Three weeks ago, a great alliance was announced between a trio of large French chains: Casino, Auchan and Systeme-U. It was intended as a sort of birth of a Supercentral that aims to buy goods together at attractive prices. Up to now, nothing strange has happened, except for that one of these Players has in recent days also participated in the creation of another new supercentral with Carrefour.
In a statement issued this morning on 25 April, Carrefour and Systeme-U declared that they were “in exclusive negotiations to make greater commitments to French agricultural producers”.
Below all the market shares of French mass market retail:
The leader continues to be Leclerc, but Carrefour, after being overtaken, managed to keep the distance. System U is an important player, with a 10.5% stake. leaving Casino (11.3%) and Auchan (10.5%), has thus placed the newly formed Auchan-Casino Group in the minority, creating with Carrefour the new leader in purchases (31% share).
It speaks of a five-year agreement “that will involve purchase agreements with major national and international brands”, and the note also explains that “The scope of this agreement, aimed at strengthening the competitiveness of the two players in the market, could be extended to indirect purchases, i.e. equipment (shelves, refrigerators, etc.). Each retailer will of course remain responsible for its own commercial and promotional policies.
This cooperation is designed to begin in the fall for negotiations with suppliers in 2019 “and closes “By consolidating the historical ties they have built with the agricultural world, the two companies want to offer the agricultural sector a partnership of reference, which will be built around prices and volumes, to provide fair compensation to farmers, for a long period of time.”