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


Facebook launches its Marketplace in Europe

16/08/2017

In October 2016, Facebook launched a marketplace for used items in several countries, including the United Kingdom and the United States. That marketplace is now also coming to Belgium, the Netherlands and fifteen other European countries.

AS Adventure acquires German McTrek

14/08/2017

Belgian outdoor chain AS Adventure has acquired its German competitor McTrek. The acquisition opens up the largest European outdoor market for the Belgians, thanks to McTrek’s 39 stores and web shop.

American department store chains continue to struggle

11/08/2017

Several American department store chains continue to underperform. Both Macy’s and Kohl’s experienced turnover slumps compared to the previous year, even though they both managed to beat analysts’ expectations.

Amazon wants to compete with Ticketmaster

11/08/2017

Amazon is in talks with American event location owners to see whether it could sell tickets for their events on its web shop.

Record turnover for Henkel

10/08/2017

German Henkel has had a record second quarter, when turnover reached nearly 5.1 billion euro. For the first time ever, its six-month turnover surpassed the 10 billion euro milestone, thanks to its acquisition of laundry detergent company Sun.

Lion Capital once again wants to sell Hema

08/08/2017

Lion Capital has approached business bank Credit Suisse to look into “strategic options” for Hema, which basically means it has to find an interested buyer for the Dutch store chain.

Back to top