French grocery pricing alliance
Elo/Auchan (ELOFR; NR/BB Neg), ITM/Intermarche (ITMENT 29s; unrated), Casino (COFP; Secured PIK; NR/NR/B+)
The 3 French focused grocers (and perhaps consumers most troubled credit names) are setting up a pricing partnership (see here). ITM and Auchan have talked about this before, unclear when Casino entered the partnership but regardless we would not place too much weight on it. Auchan has previously said it would only see tangible benefits from 2025 and S&P noted it was "untested". Please keep in mind the clarity of reporting issues we have had with these co's in the past.
Auchan holds a 9.1% market share, ITM/Intermarche 17.4% and Casino 3.2% in country - combined 30%. Carrefour by-itself holds 21% and is our next read into conditions within the country - it should bring Q3 results in late October.