Metro Group and Groupe Auchan announced this week their agreement to enter into a new phase of their purchasing partnership on local level in Romania, after having started the cooperation on local level in France last week. The new cooperation agreement implies the negotiation of brands on a local level, combining the strengths of the retailer Groupe Auchan and Metro Cash & Carry, the wholesale division of Metro Group.
After having begun their cooperation at the international level in November 2014, the partners, facing a deflationary context and the recent moves in the European retail landscape, with the development of alliances and cooperation between actors, both at global and local level, have decided to extend the scope of their innovative cooperation, based on complementary business models from September 2015.
In accordance with the local legislation applicable, Metro Group entrusts to Auchan the negotiations of the buying terms applicable in 2016 on selective and representative product categories and suppliers covering major brands in Romania via a mandating system.
Each party will continue to be independently responsible for its own commercial strategies and sales policies, which include building product ranges, defining pricing and promotional activities.
“Working together, we want to take advantage of our network complementarity in the two countries, offering the best geographical coverage and the best concepts, both in terms of formats and distribution channels, with the aim of reinforcing the competitiveness of both groups and the competition on their respective markets, drawing on the strengths of each store brand”, explains Vianney Mulliez, chairman of the Board of Directors of Groupe Auchan.
“We are now taking last year’s successful cooperation to the next level. We strongly believe, that this new step in our partnership will enable us to further strengthen our business and value proposition in Romania and France, and thus contribute to growth in this market”, says Olaf Koch, CEO of German-based Metro Group.
In Romania, the two partners operate two complementary business models. Groupe Auchan is present with 33 retail stores in Romania, whereas Metro Cash & Carry operates 31 cash & carry stores in Romania serving the professional customers.