French retailer Casino Group has announced that, along with Auchan Retail, Metro and Schiever Group, it has established a set of purchasing alliances, under the name Horizon.
The new alliances between the four European retailers will focus on moving away from purely transactional negotiations towards a more collaborative, balanced and innovative type of negotiating.
Horizon Set-Up
Internationally, Horizon will act in three areas. The first – 'International Services' – will see Auchan, Casino and Metro (including Real) offer main branded suppliers international services based on their complementary geographic locations and their presence in countries.
'International SME' will see Auchan, Casino and Metro assist SMEs in their international development. Finally, 'International Tender' will enable Auchan and Casino to launch invitations to tender for their general expenses and non-differentiating basic private-label brands.
With regards to France, Horizon will act with national brands, allowing all four retailers to jointly negotiate their purchases. This will not affect small and medium-sized business or farmers.
The four retailers will also launch invitations to tender for their general expenses in the country.
Auchan Retail, Casino Group and Schiever will develop common agricultural ‘sectors’, in line with the commitment made during France’s National Food Conference. The first four sectors will be announced at a later date.
Next-Generation Retailing
All these new actions are part of the ‘next-generation’ commitment made by the participating retailers to present their negotiating objectives at a very early stage, installing a negotiation-monitoring committee, to which provider representatives will be associated.
The groups also want to finalise their annual negotiations gradually, systemise health and nutrition talks, develop multi-annual agreements, and guarantee fair treatment to agricultural producers.
The groups noted that building Horizon both internationally and in France confirms their ‘common vision and culture when it comes to their relationship with suppliers’.
‘These agreements will be respectful of everyone’s interest: customers, farmers and manufacturers,' a press statement read. 'Each party will continue to be independently responsible for its own commercial strategies and sales policies, which include building product ranges, defining pricing and promotional activities.’
Relevant competition authorities are due to be approached for approval of the agreement prior to its implementation. A submission has already been made to the French competition authority.
In April, Casino and Auchan announced plans to develop a global strategic partnership for food and non-food purchasing.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
