Auchan and Système U will exchange stores

Auchan and Système U will exchange stores

Two of France's largest distributors have struck a deal to exchange stores: Auchan will take over Système U's hypermarkets, while the latter takes care of Auchan's supermarkets.

"Intensify our collaboration"

Officially the move is not a merger, but just an "intensification" of the Auchan-Système U collaboration from September 2014 in which both distributors decided to purchase products together in an attempt to have a bigger say in the price negotiations.

 

"Nobody is buying anybody", the Auchan board has apparently said in an internal document, according to labour unions. The document also mentions "the foundation of a new entity", managed by a "jointly-appointed board of directors". 

 

Moreover, Système U will enter Eurauchan's capital (Auchan France's purchase entity), while both groups will also intensify their collaboration in regards to house brand product development.

 

Store exchange

The most remarkable issue in the new five year project is that both distributors will exchange stores: all Hypermarchés U meeting the conditions (larger than 5,000 sqm and with a 50 million euro turnover) will transfer to Auchan. According to Linéaires, 15 out of 67 Hypermarchés U will transfer immediately, although eventually all stores may turn into Auchan stores.

 

At the same time, the 262 Simply Market stores, one of Auchan's brands, will transform into Super U stores. The consumer should be able to see the first changes after the summer.

Questions or comments? Please feel free to contact the editors


Lubach: “Fair clothing is a matter of priorities”

15/11/2017

Ever since the Rana Plaza disaster, the clothing industry has clamoured for transparency in the clothing manufacturing branch, but Zondag met Lubach’s Arjen Lubach proved on Sunday that there is no actual transparency yet.

Fashion chain Canada Goose opens first European store

14/11/2017

Canadian fashion chain Canada Goose opened its first European store in London. The brand’s clothing has been in Europe for quite some time, but only at multi-brand stores up until now.

Desigual suffers turnover blow in first three quarters

14/11/2017

Spanish fashion chain Desigual suffered a blow in the first three quarters of 2017, with turnover  down more than 10 %. It mainly struggled in Europe, a region where it generates almost all of its turnover.

Two or three stripes on clothing are Adidas' property

13/11/2017

Swedish store chain H&M can no longer use parallel stripes on its (sports) clothing, because they resemble Adidas’ three stripes too much, according to a The Hague court.

Strong third quarter for Adidas

10/11/2017

Sports clothing manufacturer Adidas experienced a strong third quarter. Its growth was slower than in the previous quarter, but its operational profit exceeded analysts’ expectations.

Yoox Net-a-Porter grows but still failed to live up to expectations

09/11/2017

Online retailer Yoox Net-a-Porter’s third quarter like-for-like turnover grew 17.7 % to 481.8 million euro, which is not entirely what analysts had expected. Its growth slowed down in the United States and China in particular.

Back to top