Louis Delhaize and Intermarché combine buying operations
11 July 2022Following the announcement of an end to its alliance with Carrefour, Louis Delhaize has agreed a buying partnership with Intermarché.
A partnership to improve buying power
Belgian retailing group Louis Delhaize and French retailer Intermarché have announced a five-year buying partnership;
In France, the Louis Delhaize group will be supplied national brands by Intermarché
In Belgium and Luxembourg, a joint central purchasing office will be established and managed by Intermarché
As part of the agreement both groups will retain their full autonomy and commercial independence.
An agreement that will be good for consumers, but not so good for suppliers
As inflation impacts all markets across Europe, Louis Delhaize and Intermarché have reacted to create a partnership that will enable the negotiation of favourable cost prices for the supply of goods.
I would expect the savings to be reflected on prices in-store as both retailers seek to be more competitive in markets where customer loyalty is on the decline as shoppers seek value for money to combat the increasing cost of living.
The partnership will also help support Intermarché’s revamped loyalty scheme, which is targeted at improving the purchasing power of its customers.
Brand manufactures may not welcome the news as they often see purchasing alliances act to only benefit the retailers involved by improving their profit margins. On the positive side for manufacturers, there is the end of the Louis Delhaize and Carrefour partnership that will terminate in February 2023 for France and December 2022 for Belgium and Luxembourg.