French supermarket operator Système U is in discussions with Amazon over a potential grocery supply deal, according to Reuters.
Amazon’s 2017 acquisition of Whole Foods in the US prompted speculation that the online giant was poised to target the European sector next. Earlier in the month, Amazon said it would create 2,000 new jobs in France.
“Discussions with Amazon to become their supplier of consumer products are underway,” Système U’s chief executive, Serge Papin, told Le Figaro. “We are not the only ones and it’s far from being finalised.”
Papin explained that Amazon is currently a small player in the food industry at the purchasing level. “It can be an opportunity for Système U, just as it can be an opportunity for Amazon,” he said.
Although a major deal with a French retailer is yet to be finalised, Amazon has steadily built up its presence in France, with its Amazon Prime Now express delivery service in Paris and partnerships with luxury food group Fauchon and organic food chain Bio c’ Bon.
Meanwhile, France’s retailers are responding to the imminent challenge presented by Amazon by seeking to bolster their online food offering and service.