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


American chains consolidate to fight Amazon

21/02/2018

American retailer Albertsons has acquired its competitor Rite Aid, after the latter had already sold a series of stores to Walgreens. The acquisitions are mainly a reaction to Amazon and other online players’ onslaught.

Walmart considers new chain in India

21/02/2018

American department store chain Walmart and Indian e-commerce party Flipkart’s negotiations may comprise more than only online retail. Chances are that it will introduce a physical chain.

EuroCommerce reminds retailers and wholesalers to be ready for GDPR

16/02/2018

(Content provided by EuroCommerce) With 100 days left before the EU’s General Data Protection Regulation (GDPR) comes into force on 25 May, EuroCommerce is reminding all retailers and wholesalers to take the necessary action to be ready and compliant.

Amazon hires 2,000 employees in France

15/02/2018

American internet warehouse Amazon’s French division is looking for 2,000 employees to keep up with its strong growth. Amazon.Fr is not only the most popular web shop in France, but also in Belgium.

Excellent year for Decathlon thanks to strong expansion

15/02/2018

Decathlon passed the 10 billion euro milestone for the first time in 2016. Thanks to a strong international expansion, it now surpassed the 11 billion euro mark.

Generational switch at BIC at a difficult time

15/02/2018

The French specialist in disposable products, Bic, will alter its board: current CEO Bruno Bich will pass on the reins to his 39-year old son Gonzalve who will have to halt the profit drop.

Back to top