French chains Carrefour en Système U have agreed upon a five year partnership for purchases of large national and international brands, forming France's largest purchase alliance. According to both, the French agricultural sector should also benefit from the collaboration.
Commercial policies stay separate
Both chains have been in exclusive negotiations since last April, but now they have actually reached an agreement. Purchases at major brands will be done together starting from the negotiations for the year 2019, but both companies will maintain their separate commercial and promotional policies. Together they will have a market share of 35 %, which is greater than that of another purchase alliance that is being developed - that of Casino and Auchan. Competition in the French food sector is fierce and all companies are afraid of the havoc Amazon may wreak if it decides to launch a full-blown attack on the 'Hexagone'.
The chains also promise to improve the situation of French agricultural producers. The agreement is still subject to approval of the competition authorities.