PARIS — French retail giant Carrefour SA said it has forged a deal with domestic grocery rival Système U to join forces for purchasing products from large national and international brands.
The deal, which remains subject to approval from local market authorities, is the latest in a series of partnerships, agreements and acquisitions at Carrefour as chief executive officer Alexandre Bompard steers the sprawling retailer’s turnaround efforts.
Système U is a cooperative of French retailers operating grocery stores under the Super U banner. The partnership, which is set to apply to supplier negotiations in 2019, increases commitments to favoring French agricultural producers.
Carrefour, the world’s second largest retailer after Walmart Inc., has in recent years struggled under the weight of sluggish consumption in its domestic market. To revive its business, the inventor of big-box hypermarkets is betting on the leadership of Bompard, an executive credited with adapting book and electronics retailer FNAC to increasing online consumption by merging it with a home appliances dealer Darty.
Since Bompard took the helm of the company, it has focused on increasing its offer of antibiotics-free products, introduced blockchain tracing systems and bolstered e-commerce operations.