Auchan, Casino join forces on international market
on the international stage, Auchan and Casino have formed a new
company which will negotiate with both major brand owners and small
and medium-sized companies on an international basis.
Auchan and Casino, two of France's largest food retailers, have formed a new company, International Retail and Trade Services, which will combine a part of both companies' international operations.
Specifically, the new unit will be responsible for negotiating with a hundred or so major suppliers for pan-European or indeed global agreements on behalf of the two companies, while at the other end of the scale it will also negotiate with small and medium-sized companies which are looking to expand their business outside their home market.
The two companies currently have complementary international operations in 26 different countries, and joining forces clearly makes a lot of sense, although both Casino and Auchan were quick to stress that it was not a new buying group and that they would retain their purchasing independence. The two companies will also only work together on the international stage and will remain rivals in their home market.
The new unit is designed to allow the two retailers to react quickly to the demands of major multinational suppliers seeking to give greater international exposure to their brands, and will allow them , for example, to launch new products simultaneously in numerous countries or to organise cross-border promotions.
For SMEs, the new organisation will facilitate negotiations with the various national buying groups for the two retailers, allowing them easier access to stores outside their traditional markets.
Auchan and Casino said that IRTS would also allow them to offer more competitive prices on major branded goods, in turn helping them to compete with larger rivals which have a greater purchasing power than the two individual companies. Auchan and Casino are the 19th and 22nd largest retailers in the world respectively.
IRTS will be controlled jointly by the two companies, and will be headed by Alain Cappannelli, currently international purchasing director at Auchan. It will have a dedicated buying team composed of staff from both chains.
