Is it a question of timing or a dispute over the valuation of Auchan that is not going to pass? In any case, since Spring, two major players in mass distribution in France, Carrefour and Auchan, discuss their common future. Alexandre Bompard, CEO of Carrefour, announced Thursday in Le Monde, that he was studying several consolidation scenarios, including that of getting closer to its competitor Auchan. On what perimeter? At least on the possibility of making coupled purchases.
The force of the war
The big brands are forced to play as a team to weigh. However, Auchan, at the beginning of the year, saw Casino withdraw from their joint purchasing alliance to turn to Intermarché. Auchan cannot remain alone. And discussing with Carrefour makes sense. Even common sense. But it seems that the exchanges go further than the purchases: a merger of the stores too? Always a delicate operation.
It is true that Carrefour – number 2 in France with a 20% market share just behind E.Leclerc, strong at 23% – is still looking for allies to weigh in. Auchan, with 10% of the market share, has lost its splendor in recent years with large formats of aging retail spaces, which no longer correspond to consumers’ expectations. Auchan, which has 137 hypermarkets in France and 278 Auchan Supermarket, is therefore also seeking to bounce back. It is the grandson of Gérard Mulliez, Alexandre Mulliez, vice-president of Auchan France, who recently arrived at the helm, who says so.
The banns have not been broken
By posting an ambitious project of 15% market share in 2027, five points more than today. Was he already thinking of the proposed merger with Carrefour? Everything matches in any case.
But as in weddings, when it comes to talking about the dowry, things get tough. BFM seems to know that it is the valuation of the Auchan group that would not be strong enough in their eyes. Will the two brands still leave time to settle this strategic point? To date, the bans have not been broken.
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