Auchan and Système U will exchange stores | RetailDetail

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


Several candidates to take over Men at Work

12/07/2018

There are several takeover candidates for both the Dutch and the Belgian stores of the bankrupt clothing chain Men at work. The curator is confident an agreement should be reached today in Belgium.

Burberry sales increases thanks to new strategy

11/07/2018

The new strategy of the British fashion brand Burberry starts to render: the company had a 3% increase of revenue in their own stores last quarter. In total, Burberry has now a revenue of 479 million pounds (520 million euros).

FNG moves to Brussels stock exchange

06/07/2018

Belgian fashion group FNG has collected 60 million euros by issuing new shares. The new shares will be traded on the Amsterdam Stock Exchange and - for the first time - on the Brussels Stock Exchange as well.

Athleteshop ends its run

02/07/2018

Dutch sports web shop Athleteshop has filed for bankruptcy, after an abysmal year in which strings of complaints led to all sorts of problems. Social media and review sites were flooded with customers complaining about late deliveries.

Alibaba goes Turkish with stake in Trendyol

29/06/2018

Alibaba is the new strategic partner of Trendyol, one of the best-known e-commerce companies in Turkey. With this partnership, the Chinese retailgroup strengthens its presence in Europe.

Profits H&M Group take another hit

28/06/2018

Swedish fashion group Hennes & Mauritz has published a fourth consecutive quarterly turnover that was lower than expectations. The group that owns chains like COS, Monki and &Other Stories saw its profit drop by 21 %, despite a (slightly) higher turnover.