This agreement takes place in a difficult economic backdrop, with value being wiped out by deflation, no prospect of a rebound in the medium term, and a reorganisation of the mass retailing landscape in France.
It concerns the negotiation of purchases from national and international brands, with the exception of traditional fresh farm products. Fruit and vegetables, cheeses, baked goods, cakes and pastries, meat and fish are therefore excluded from the agreement.
Own-brands, which on average account for 25% of revenue at the two banners, are also excluded from the purchasing cooperation agreement. Each banner will continue to be independently responsible for their own sales policies, which include building product ranges, and defining pricing and promotional policies. The Système U and Groupe Auchan purchasing cooperation agreement will be effective from October 2014 for negotiations related to 2015.