FRANCE: Auchan In New Purchasing Tie-Up With Boulanger

Auchan has announced a new purchasing partnership in France with Boulanger, a specialist in the local household electrical goods and multimedia market.

The companies said that after several months of talks, they have entered into a partnership for the negotiation of purchases of white, brown and grey household electrical goods manufactured by national and international brands aimed at the French market.

Auchan Retail will grant Boulanger the mandate to negotiate on its behalf, beginning as of the start of negotiations on commercial terms for 2017 (excluding retailers’ own brands), which get underway in October 2016.  The tie-up involves an estimated business volume of more than €2.1bn (excl. tax), making it the second-largest such deal in France.

The two sides said the move will boost the competitiveness of the banners concerned, while also helping customers, and is designed to make them leaders on their respective markets.

Jean-Denis Deweine, Product Director for Auchan Retail, said the tie-up “confirms the importance of this activity sector in our brand model. It gives the partners of the new group an opportunity to strengthen their commercial leadership on each of their networks.”

NAM Implications:
  • Where at: This means increased buying muscle, in anybody’s language, along with extended reach for suppliers that make the grade
  • Where headed: Real issue is the impact of retailers from other countries/markets and categories join the partnership
  • Effect on you: Any differences in prices and terms then need justifying in each market
  • Action: Time to anticipate ‘wild-card’ combinations, or even existing partnerships – think Asda – EMD for instance, and conduct some what-ifs for your brand/categories, now…