In dire straits for several years, group distributor Mulliez Auchan announced on Tuesday 25 November that it wants to operate all its 300 French supermarkets (excluding Corsica) as franchises under the Intermarché and Netto banners, thus continuing its merger with the Mousquetaires group. Mass distribution specialist Gaëlle Le Floch, director of strategic ideas at Kantar WorldPanel, outlines the advantages and disadvantages for both brands of this unique alliance.
How do you view the big store transfer window announced between Auchan and Intermarché ?
The phenomenon of concentration in mass distribution began about two years ago with frenzied sales and takeover competition: the weakest brands were bought up by other, more competitive brands. This sector has not experienced large volume growth in recent years, as the food market is completely saturated. Consumers are faced with purchasing power issues and make trade-offs based on them
