European retailers Auchan Retail, Casino Group, Metro and Schiever Group have formed an alliance to develop a new purchasing platform.
Called Horizon, the new purchasing platform is aimed to reduce transactional negotiations and introduce innovative, balanced negotiation types.
Horizon will act in international services, international smal-medium enterprises (SME) and international tender.
Auchan, Casino and Metro will offer international services to the suppliers and will assist SMEs in their international development under International SME.
As for International Tender, Auchan and Casino will launch invitations to tender for their general expenses and basic private-label brands. These platforms will be based in Geneva.
Horizon will act in National Brands, Invitations to tender and sectors in France.
Under National Brands, the retailers will jointly negotiate their purchases with the main manufacturers of the national brand. It will not affect small and medium-sized businesses, or farmers.
They will jointly launch invitations to tender for their general expenses and basic private-label brands under invitations to tender while developing common agricultural sectors under sectors.
These platforms will showcase negotiating objectives, the installation of a negotiation monitoring committee, finalisation of the annual negotiations gradually, systemising the subjects of nutrition and health, developing multi-annual agreements and ensuring a guarantee of fair treatment to agricultural producers.
Before its implementation, approval will be procured from relevant competition authorities. An application has already been submitted to the competition authority in France.