why are Auchan and Intermarché seeking to get closer?

Because there is strength in unity, the two groups want to join forces to have greater influence over their competitors.

The two groups, Auchan and Intermarché, aim to create a large center, and even the first French purchasing center. Concretely, this means placing orders together, particularly internationally, to have more influence over manufacturers, such as Coca-Cola, Unilever, or even Nestlé. They thus hope to obtain the best prices and the best services whether for food orders, but also for cleaning products, or others. Each would keep its name and its stores, but it is really on the purchasing part, which is highly strategic, that the pooling would take place at least initially.

This rapprochement can be explained by the fact that the competitors of Auchan and Intermarché are better armed. Système U is, for example, allied with the Germans and thus benefits from a European purchasing center. Leclerc, thanks to alliances with the Dutch and Germans, also plays at European level. Carrefour, is by definition larger, and has stores throughout Europe and the world, which gives it weight with suppliers. For its part, Auchan has been losing momentum for several months and for Intermarché, it is a little different, since the brand has the particularity of bringing together independents and franchisees.

A sector prey to major maneuvers

The two distributors are not only seeking to come together on the purchasing side, but also on a global offer to take over the stores of the Casino group, which is in great financial difficulty. The sector recomposes itself according to marriages and disappearances. The Casino brand, in fact, risks disappearing with several players at the start of a “cut sale”. A few months ago, Carrefour bought Cora and Aldi, Leader Price.

Of course, all these brands have always been in competition, but the competition has been exacerbated with inflation. With the rise in prices, the French are buying less and consumption is eroding in supermarkets. Everyone is therefore reviewing their model a little to keep their place or try to eat away at their neighbor’s market share. In this frantic race, for the moment, it is Leclerc who is still in the lead.