Carrefour has announced it is looking to deepen its partnership with Fnac Darty, which could lead the latter to establish around 30 Darty standalone stores in its hypermarkets in France under exclusive operating agreements. The companies said the deal would require prior approval by the Competition Authority.
Repurposing space key to 2022 Transformation Plan
Carrefour made reallocating more than 100,000 sq. m of space in its hypermarkets by 2020 a key part of its plan to revamp the format in France. The partnership with Darty was a way for Carrefour to meet this target, with two trials having been run since November 2018 to understand their effectiveness. The tests appear to have been successful, with Carrefour saying it is finalising operating procedures for the roll out of 30 Darty stores in its hypermarkets in 2020 and 2021.
Expansion of Darty stores to come as purchasing partnership comes to an end
Before Carrefour and Fnac Darty discussed the roll out of Darty stores in its hypermarkets, the two retailers established a buying partnership, which is set to come to an end at the end of 2019. Following the agreement’s termination, Carrefour and Fnac Darty conduct their annual price negotiations with suppliers for 2020.
Subscribers wanting to understand the key elements of Carrefour’s 2022 Transformation Plan can read our Strategic outlook for Carrefour.