Carrefour and Système U have announced the signing of a five-year purchasing agreement, involving the purchase of national brands, international brands, and French agricultural products.
The signing of the agreement follows the announcement that both retailers had entered into negotiations in April.
In a statement, Carrefour said that the partnership is expected to be effective for 2019 supplier negotiations. Once the agreement is fully in place, Carrefour and Système U will maintain separate commercial and promotional policies.
The partnership is subject to the prior notification of France's Competition Authority.
The deal will make Carrefour the biggest buyer in the French market, with the company's chief executive Alexandre Bompard eager to streamline the business and make it more profitable.
At the time the two retailers announced the proposed agreement in April, Bernstein analyst Bruno Monteyne commented, "If Système U had joined that alliance, it would have made Casino the biggest buyer [in France]. That competitive advantage now goes to Carrefour."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.