French competitors join hands to get lower prices | RetailDetail

French competitors join hands to get lower prices

French competitors join hands to get lower prices

A month after Auchan and Système U had struck a deal to purchase products from the large brands, Intermarché and Casino will also collaborate in this sense. The food industry and other manufacturers fear what is coming next.

Weigh more on price negotiations

French distribution groups Casino and Intermarché will join forces when they meet suppliers for price negotiations. They will then be able to negotiate lower purchase prices in return for larger volumes at companies like Coca-Cola, Nestlé, Unilever and L'Oréal.

 

The collaboration is for both food and non-food, but only A brands, so private labels are excluded - as are traditional fresh products (like vegetables, fruit, meat and fish) and "products from national brands, produced by small or medium-sized enterprises". Some 70 to 80 popular products are included however.

 

Rearrange the playing field

The Casino-Intermarché deal will start immediately and will already impact the price negotiations for 2015, which have started recently between French distributors and suppliers.

 

The collaboration will thoroughly change the French supermarket landscape, which has been in a price war for quite some time. Casino has an 11.5 % market share, while Intermarché has 14.3 % but together, they are larger than Carrefour or Leclerc, respectively number 1 and 2 in the French market (both controlling 20 % of the market).

 

The big two will even have to trail Auchan and Système U, number 5 and 6 in the French supermarket sector. The latter two started a collaboration in September and now represent a 22 % market share.

Questions or comments? Please feel free to contact the editors


Stop overregulation blocking retailers delivering value for consumers

20/04/2018

(content provided by EuroCommerce) In an initial response to the Commission Communication: A European retail sector fit for the 21st century, published today, EuroCommerce approves of the Commission's stance against overregulation.

The Future Of Shopping wins Management Book of the Year award

20/04/2018

RetailDetail can proudly announce that “The Future of Shopping: Waar iedereen retailer is” (The Future of Shopping: where everyone is a retailer), written by Pauline Neerman and Jorg Snoeck, is 2018’s management book of the year.

100 million Prime subscribers for Amazon

19/04/2018

Ecommerce giant Amazon surpassed the 100 million Prime subscriber mark, just one of the many milestones CEO Jeff Bezos mentioned in his annual shareholder briefing.

Distributors and transport industry demand cleaner trucks

19/04/2018

35 companies, including Colruyt, Carrefour and Ikea have asked Europe to force truck manufacturers to lower their emissions 25 % by 2025. “Totally unrealistic”, the manufacturers’ spokesperson said.

JD.com to launch 1,000 stores per day

17/04/2018

JD.com has announced plans to open some 1,000 convenience stores per day across China. With this impressive target, the country’s second-largest e-commerce company is giving speed to its ambitions of expanding into the offline market.

Hans Anders surpasses 200 million euro turnover mark

12/04/2018

Dutch optician chain Hans Anders’ turnover grew 6 % last year, to 203.7 million euro, but it also announced it would divest from the French market.