Metro and Auchan have entered an “international purchasing partnership” together, which is composed of a branded-goods component (foodstuffs), and a private label component (non-foodstuffs), Reuters reports.
The deal entails joint negotiations with suppliers from across the world of branded food goods, as well as with makers of an array of non-food products (mostly Asian or Eastern European), which each company will then sell under their own labels. The two European grocers have called these their "international cooperation agreement" and their "international sourcing agreement" respectively.
The Metro Gruppe CEO, Olaf Koch, commented, "We are convinced that both of our companies will benefit from the upcoming cooperation and the combination of expertise. We want to use the strengths of both organizations to capture maximum synergies towards our common suppliers and generate cost savings, which we can then pass on to our customers.”
Chairman of Auchan’s board of directors, Vianney Mulliez, said, "This strategic buying partnership allows us to face the challenges of trade globalisation and the changing procurement markets. This agreement between two major actors of the sector is a great opportunity to develop business and to strengthen our relationship with our main suppliers."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
