Michel-Edouard Leclerc Alain Caparros

Michel-Edouard Leclerc and Alain Caparros

French retailer E.Leclerc and German group Rewe have revealed the creation of a mutually beneficial strategic alliance, a move announced by CEOs Michel-Edouard Leclerc and Alain Caparros on 5 June.

'Just like all other competitors in European retail, Rewe Group and E.Leclerc are facing major changes in the industry: new forms of trade, e-commerce, new customer requirements and the ongoing increase in complexity of sourcing present far-reaching challenges,' a joint statement read. 'These changes can be observed in an environment in which numerous market players have entered into strategic partnerships and alliances on a national and international level; not least, they require considerable investments.'

Rewe and E.Leclerc are already involved in areas such as sustainable development, energy saving, efficient logistics, the digital economy and optimised customer relationship management, areas that the retailers have agreed to cooperate closely in through joint projects.

The objective of the alliance is to identify synergies in the context of the business activities of the two companies, and to leverage these to mutual benefit, while the independence and autonomy of the two partners remains unaffected.

'The management boards of the two groups have exchanged their views on these subjects and discussed the options to develop common strategic directions and to leverage synergies, notably in the area of procurement of both companies,' explained Leclerc and Caparros. 'In view of the major alliances that have been newly established in European retail, we have therefore come to the decision that we will jointly take advantage of every possibility to improve the growth opportunities of our two groups.'

In the context of the alliance, Rewe Group and E.Leclerc will, among others, establish a joint purchasing company.

Moreover, the companies have agreed on cooperation in specific projects where joint teams of E.Leclerc and Rewe Group will work on strategic topics such as the further development of the organic products segment, cooperation in the travel and tourism segment, in import as well as in the areas of electric mobility and energy.

In connection with the comprehensive alliance with E.Leclerc, Rewe Group is going to leave the Belgian CORE cooperative; the withdrawal from CORE will have been completed by 31 December 2015 at the latest.

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