“In order to obtain more favourable conditions [prices] for our customers, we consider it appropriate to use our cumulative volumes in negotiations with suppliers with very high turnovers. It is a normal development for two retailers to combine their purchasing volumes to create forms of alliances that allow them to compete even more effectively with the large food retail chains and ensure better prices for customers, especially in this inflationary conjuncture,” said Gaëtan Pacton, Profi’s general manager.
The companies claim that the project “was designed based on similar partnerships in more mature retail markets and complies with legal requirements to protect competition” and explained that the ultimate goal of the arrangement is to get better prices for customers.
Apart from jointly negotiating, with a limited number of large suppliers, mostly international, over some commercial procurement conditions within the partnership, Profi and Auchan will continue to operate separately on the market as two powerful rivals. At the same time, Profi and Auchan will act independently in relation with all the other suppliers, as they have so far.
Profi, held by investment fund Mid Europa Partners, has 1.2 million customers per day and a more than 1,645 stores across over 790 urban and rural localities. With a turnover of RON11.6 billion, Profi ranks third in the Romanian retail sector.
Auchan Romania has 327 stores comprising 33 hypermarkets, seven supermarkets and 287 MyAuchan ultra-proximity units, of which over 270 are located within Petrom filling stations, as well as the online store www.auchan.ro. In 2021, Auchan Romania had a turnover of EUR1.2 billion.