Metro Cash and Carry and Auchan have announced a venture in France to expand their private-label business.
The wholesale arm of Germany’s Metro Group said it will have access to Auchan’s own-label supplier network, giving it better purchase conditions as well as access to the French retailer’s “know-how” in “assortment” and “quality standards”.
Metro Cash and Carry claimed that the partnership will allow Auchan to increase its purchase volumes and give it indirect access to new consumers through small independent retailers who would not be their typical clients.
The cash-and-carry chain is looking to improve its range of private-label products for traders and to offer high-quality products at “good prices”.
The wholesaler Metro said the new products would help independent traders to “compete with affiliated traders and hard discounters”.
Officials at Auchan did not respond to requests for comment.