In a strategic move that is shaking up the French retail market, Intermarché, a leading mass distribution brand owned by Les Mousquetaires, has announced its plan to acquire 81 of Colruyt’s stores across France. This ambitious expansion follows Intermarché’s acquisition of nearly 200 Casino stores a few months ago.

Colruyt’s Strategic Decision

Established in France since 1998, Colruyt operates 104 stores, 45 service stations, and 3 warehouses, employing over 2,300 people. However, the Belgian group has recently struggled with the competitive conditions of the French market. Despite significant efforts to boost profitability, Colruyt noted that its French activities did not meet the expected results.

“Despite the positive contribution of stores, these activities are not of a scale which would make it possible to achieve sufficient purchasing power and cover general and logistical costs,” said Colruyt. After analyzing different strategic options, the group believes that the offer by Les Mousquetaires provides the most sustainable solution.

Intermarché Strengthens Market Position

Colruyt announced that Les Mousquetaires had offered a unilateral purchase promise on June 16, committing to acquire 81 stores and 44 service stations for an estimated 215 million euros. This acquisition would automatically transfer over 1,300 employees and offer permanent contracts to approximately 175 additional warehouse employees. The Belgian group emphasized that they considered multiple offers for the remaining stores.

Intermarché confirmed the acquisition as part of its strategic plan aimed at strengthening the positions of its Intermarché and Clean brands in France, targeting a 20% market share by 2028.

Evergreen Context: The Evolving French Retail Landscape

The French retail market has witnessed significant consolidation over the past few years.Slot sizes have become a critical factor for retailers aiming to compete effectively. Establishing a strong physical presence is key to attracting customers and maintaining profitability. Les Mousquetaires’ recent acquisitions underscore this trend, as the group continues to diversify and dominate market segments.

Consumers relies on various factors, including price, quality, and convenience, when choosing retailers. Intermarché’s strategic expansion reinforces its competitive edge, making it a formidable player in the increasingly complex landscape of food distribution in France.

The Impact on Employees and Consumers

The transfer of employees from Colruyt to Intermarché is a crucial aspect of this transaction. Colruyt aims to ensure the continuity of operations and job security as much as possible. For consumers, this acquisition may lead to improved service delivery and wider product offerings, enhancing the overall shopping experience.

This breaking news highlights the dynamic nature of the French retail sector and the strategic moves companies are making to stay competitive. As Intermarché continues its expansion, it’s essential to keep an eye on the evolving market landscape and what it means for both retailers and consumers.