*4.9. Food Retail*

The wholesaler distributes the finished products to the food retailers (e.g., Company I). Company I is a regionally active company with a dense network of stores in the urban area, which customers use "[ . . . ] to cover their daily needs." [IP11]. The size of the retail stores ranges from 100 to 1000 square meters and are mostly located in urban areas.

The formal coordination of the supplier relationships depends on the size of the suppliers: "supplier contracts are only common with large suppliers [ . . . ]" (IP11). Contracts

with large suppliers regulate, for example, the assurance of delivery days, advertising cost subsidies, and refunds. Sustainability aspects are not part of any written agreements or contracts. Company I purchases most of its products through wholesalers and maintains direct contractual relationships with most trading companies in parallel. These agreements are not about formal delivery conditions but about advertising measures and a better external presentation of the brand in the grocery stores. To ensure the sustainability of the purchased products, Company I relies on certificates. All organic products need to be labeled with the EU organic logo.

In the case of direct supplier relationships without a wholesaler as an intermediary, Company I aims for long-term supplier relationships since they are more rational to manage. In long-term relationships, the partners understand each other better, and through the existing, familiar communication channels (sustainability), demands can be understood and implemented in the supply chain more quickly. To build long-term relationships, the suppliers are visited in person: "I take a look at the production facilities, you get to know each other in person [ . . . ]." (IP11). By visiting the production sites, trust is built, and the companies become more connected: "Those who like to show their production sites and also give tours; you [ . . . ] have a more trusting relationship with them." (IP11).

Besides using sustainability certificates, the promotion of social or environmental sustainability among its partners is not fostered in any particular way by Company I.
