Carrefour and Fnac Darty to establish purchasing partnership

Date : 05 December 2017

France-based Carrefour and Fnac Darty have announced the signing of an agreement that will see the two retailers partner for the purchasing of household domestic appliances and consumer electronics in France.

Agreement will be effective for 2018

The two retailers said the agreement will be ‘effective for the 2018 supplier negotiations’. They also noted that they ‘will maintain independent commercial policies’. The announcement did note that the agreement was ‘subject to prior information of the French Competition Authority’, but it is not expected that this will impact on its implementation.

Partnership could be first step in collaboration

Carrefour and Fnac Darty have the potential to extend their agreement in future, although this has not been highlighted in the announcement. Carrefour’s new chief executive, Alexandre Bompard, is targeting an improvement in the performance of the retailer’s hypermarkets and adding Fnac and/or Darty concessions in the stores would be a quick way to help this.

The initiative could mirror similar developments seen by UK-based retailers who have looked to maximise the use of the selling space in their largest stores. Asda and Sainsbury’s, for example, have been taking a new approach to concessions as ways to drive footfall and make their stores more appealing.

Carrefour to set out strategy in January 2018

It is likely that any expansion of the agreement with Fnac Darty will come as part of Carrefour’s new strategy statement, which is expected at the end of January 2018. With rivals announcing a range of buying alliances, online initiatives and new store formats, Carrefour is coming under pressure to set out firm plans to how it will compete. Partnerships like this one are likely to play a key role.

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