This cooperation is clustered in two agreements that will combine the complementary strengths of the retailer Groupe Auchan and the wholesale and food retail divisions of METRO GROUP.
Within the framework of the changing global retail environment, METRO GROUP and Groupe Auchan announced their agreement to enter into an international purchasing partnership. This cooperation is clustered in two agreements that will combine the complementary strengths of the retailer Groupe Auchan and the wholesale and food retail divisions of METRO GROUP.
-In the first place, an international cooperation agreement enabling joint negotiations of additional and on specific international services and conditions for the most important international suppliers of branded consumer products on global level.
-Secondly, an international sourcing agreement will be put in place enabling joint worldwide purchasing of non-food products that each company will resell individually under its own brand labels or as no-name labels.
The agreed partnership combines for the first time the bargaining power of two leading companies, which operate two different business models with an ideal geographical fit.
The partnership is new in the worldwide retail environment, as it is combining the purchasing powers of a predominantly wholesaling company with those of one of the leading retailers. For the partnership, there is no overlap between Groupe Auchan and METRO GROUP in terms of sales activities in the same geographical markets. Groupe Auchan’s core business is in the retail market for sale of daily goods to consumers. METRO GROUP is active in the wholesale sector for business customers and food retail activities in countries where Groupe Auchan is not present. This led the two groups to consider the development of a partnership that will bring business growth and benefits for costumers.
Source: Groupe Auchan