Auchan, Systeme U drop store-swapping alliance | Progresiv
French retailers Auchan and Systeme U said they had dropped plans to swap stores under an alliance aimed at boosting efficiency and that they would instead expand cooperation on purchasing. 
The two retailers said in a joint statement that they had notified their decision to France's competition authority, which has been conducting an in-depth inquiry to assess whether the planned alliance breached anti-trust rules.
The deal between France's fifth and sixth largest retailers was initially limited to cooperation on purchasing, with a view to securing greater power in negotiations with suppliers.
The store-swapping arrangement was added later as a means of increasing efficiency.
The store-swapping side of the deal, which required each manager of the Systeme U cooperative to agree if asked to convert his store to an Auchan banner was "too complex to roll out in the short-term," the statement said.
The Auchan-Systeme U deal followed a flurry of purchasing alliances sealed in France in recent years by Casino with Intermarche, and market leader Carrefour with Cora/Supermarches Match in order to save on costs amid a price war among retailers. (www.reuters.com)
