Sleeping with the devil or an angel In disguise?

Tuesday 27 March 2018


News today of French grocer Casino's partnership agreement to sell its products through Amazon further illustrates how traditional retailers are softening their stance to partnerships with the big platform players.

In this instance the near term benefits for Casino are clear, accelerating their online reach and delivery offer, and providing a necessary antidote to the billions of euros of capital invested by its larger grocery competitors. The surge in its share price illustrates that investors think the same.

For Amazon, the ability to accelerate to network scale and learn the idiosyncrasies of the French grocery market make it an attractive proposition.

The challenge for this partnership comes in the medium term, and ultimately what happens once Amazon has reached local scale in France. 

We would urge two areas of focus for Casino, and other retailers considering this model, to ensure long term value is protected.

  1. Ensure that you protect and build your assets and capabilities through the partnership and that you neither give too many of your crown jewels away, nor get left stranded some distance away from a credible standalone digital offer in the future. 
  2. Maintain a clear view of your customer economics and ensure that you are not inadvertently shifting profitable customers into channels where you reap less of the spoils.

We will certainly follow the partnership with great interest.

Find out more about Matt Coode, Partner

Experts in this insight:

Suggested Reading

Tuesday 20 March 2018

Look east: The new frontier for eCommerce innovation

Further evidence of the rapid pace of innovation and disruption in Asian eCommerce

Subscribe to our Insights

Find out more with our newsletters and insights 


We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details please read our Cookie policy.