EUROPE – A recent Reuters report has suggested that the announcement of a strategic partnership between major European retailers Ocada and Casino could force French supermarket chain Carrefour “into Amazon’s arms” and prompt either a partnership of acquisition bid in the near future.

According to Reuters’ report, a deal between major French retailer Casino and the British online retailer Ocado has primed Casino to expand its ecommerce presence and outpace its domestic rivals, including Carrefour—the world’s second-largest retailer behind U.S.-based Walmart. Analysts have suggested that the move could force Carrefour to take countermeasures and noted that the most logical means to do so would be by joining forces with Amazon.

Carrefour’s CEO Alexandre Bompard took control of the retailer in July of this year and is reportedly working on a turnaround plan that could involve a partnership with an expansive Amazon.

Earlier this year, Bompard suggested that a key part of his turnaround plan would be accelerating growth in ecommerce channels, telling analysts, “Carrefour needs to accelerate the digital transformation and become truly omni-channel to compete in the new retail landscape.”

Amazon reportedly launched an initial foray into the French brick-and-mortar retail market earlier this year—making overtures toward Casino, Leclerc, and other retailers in hopes of establishing a foothold for its expanding worldwide presence.

“Casino is taking a key technological advantage in France and will drive Auchan and Carrefour to react...The read across for Carrefour implies an alliance with a partner which can only be Amazon,” a Natiis analyst told Reuters, noting that it may only be a matter of time before a partnership or acquisition is announced. “Such a deal would be well received by the market and even more so if its announcement came on Jan. 23 during Mr. Bompard’s group’s strategic review.”

AndNowUKnow will continue to report with updates as the situation unfolds.

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