Metro Group and Groupe Auchan have announced their entering an agreement into a partnership of international purchasing.This partnership is spread over two agreements which will see the combination of Metro Group’s food retail and wholesale divisions with the complementary strengths offered by Groupe Auchan.
The first part of the agreement is an international cooperation which allows for joint negotiations of specific and additional international conditions and services for the most important international suppliers of branded consumer products on a global level.
The second part is where a global sourcing agreement will be implemented to allow for joint international non-food product purchasing which will be resold by each company under its brand labels or in the form of no-name brands.
Both agreements exclude electronic consumer products.
This is an innovative partnership in the global retail arena as it combines the purchasing strengths of a predominantly wholesaling group with that of one of the top retailers. For this partnership, there will be no overlap between the two companies’ sales activities in the same geographical markets. Groupe Auchan places focus on the retail market in sales of daily consumer goods. Metro Group is active in the business customer and food retail activity wholesale sector in geographical locations where Groupe Auchan is not active. This is the reason why the two companies considered the partnership as it will bring both benefits for consumers and business growth.
This agreement will become effective from November 2014.