French retailers Carrefour and Fnac Darty are close to agreeing an alliance to combine their purchasing power for electronics products.
Reuters reports that according to BFM Business’ information, Carrefour and Fnac-Darty have been discussing for several months a major alliance to pool together purchases. It would involve jointly buying consumer electronics and household equipment.
The alliance would be limited to France.
A source close to Carrefour told Reuters that Carrefour’s specialized (non-food) retail teams were discussing a possible purchasing alliance with “several players and not just Fnac Darty”.
Alexandre Bompard, the former chief executive of Fnac-Darty joined Carrefour in July. He is due to unveil his strategic plan for the French company, which issued a profit warning in August on 23 January. Fnac Darty unveils its own strategic plan next week.
Last year, Carrefour’s French rival Casino and furniture chain Conforama, owned by South African group Steinhoff, forged a cooperation agreement covering household appliances from white goods to lighter electronics such as televisions and computers, to use a combined €1.3bn euros of purchasing power to boost efficiency.
Carrefour's share price was marginally down in mid-morning trading but Fnac's share price was up just under 2% to 89.97.