Blog: Another buying partnership on cards in France

Dean Best | 25 April 2018

Yet more news of a potential purchasing alliance between France's largest grocers emerged today (25 April).

Three weeks after a trio of France's major chains - Casino, Auchan and Systeme-U - announced they were in talks over collaborating on buying, the latter has disclosed it is now in talks with Carrefour.

In a statement issued this morning, Carrefour and Systeme-U said they are "in exclusive negotiations to make greater commitments in favour of French agricultural producers".

The retailers said they are holding talks over a possible five-year deal "that will involve purchasing negotiations with the biggest national and international brands".

"The scope of this agreement, intended to reinforce the competitiveness of the two banners, could be extended to include indirect purchasing. Each banner will remain responsible of their commercial and promotional policies. This cooperation is designed to begin in the autumn for the 2019 negotiations round with suppliers," they said.

"By consolidating the historical links they have built with the agricultural world, the two companies want to offer the agricultural sector a partnership of reference. It will be built around prices and volumes to provide fair compensation to farmers, over an extended period of time."

just-food has contacted Casino and Auchan for reactions to the news.

Earlier this month, Casino and Auchan said they would start discussions on a "strategic partnership" that would see the companies "jointly negotiate their purchases in France and abroad with their main multi-national food and non-food suppliers".

Systeme-U - which already teamed up with Auchan on purchasing in 2014 - had been given the opportunity to join this new tie-up. Auchan said Systeme-U had confirmed its interest.

France's food-manufacturing trade body, ANIA, had hit out at the news of the possible deal between Casino, Auchan and Systeme-U.

The association has been critical of retailers teaming up on purchasing in France over recent years and so is likely to be wary of news of talks between Carrefour and Systeme-U.