Casino and Auchan partner up to negociate better pricing | RetailDetail

Casino and Auchan partner up to negociate better pricing

Casino and Auchan partner up to negociate better pricing

French Casino Guichard and Auchan Retail are considering an alliance to help both retail chains negotiate better prices with major consumer-goods makers and thus withstand competition from international players on the French supermarket sector.

Purchasing alliance

Casino Guichard Perrachon SA and Auchan Retail are in exclusive talks to join forces through a purchasing alliance, reports Bloomberg on its website. With a partnership of this nature, the two French retail players are hoping to negociate better prices with national and international producers of consumer goods. 


Pressure on the French supermarket sector is increasing: only last month Amazon confirmed its ambitions to launch its grocery service (Amazon Fresh) in France with a delivery deal involving Casino. The alliance that is currently on the table for Casino and Auchan is “one way of achieving some much needed purchasing scale”, says Bloomberg analyst Charles Allen, and “not just for Casino and Auchan, but for all traditional French retail players.” Both Auchan and Casino have already indicated that their current procurement partners would be able to take part in the alliance as well. 


For Casino, the pact would replace the procurement tie-up it had previously with Intermarché , although it would cover “a smaller share of the French market than did the Intermarché agreement,” adds Allen. Nevertheless, both Auchan and Casino expect the new deal to help French suppliers develop abroad, all in accordance with competition rules. Auchan currently operates in 17 countries, Casino runs chains including Geant big-box stores, Casino supermarkets and the French e-commerce site C-discount.

Questions or comments? Please feel free to contact the editors

Gerelateerde items

Action owner wants to sell stake


Action’s owner, investment firm 3i, aims to sell a part of the discount store chain next year. The Brits would want to sell a 35 % stake in the firm.

Belgian fund close to HEMA acquisition


Belgian Core Equity holding is allegedly close to acquiring Dutch chain HEMA: a verbal agreement is apparently in place, all that is required are the signatures.

Walmart, not Amazon, will acquire Indian market leader Flipkart


Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations


Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

Shareholders ‘not amused’ by Unilever CEO's wage increase


One in three British Unilever shareholders voted against the company’s proposed remuneration plan. Investors in the Dutch part of the (currently) British-Dutch company will vote on the plan as well.

Macy's acquires New York-based concept store Story


American department store chain Macy’s will acquire New York-based concept store Story. Founder Rachel Schechtman will become Macy’s’ “brand experience officer”.