The agency, which is 84% owned by retailer Tesco, said it had created Dunnhumby France, a joint venture business with Groupe Casino, which will use existing data from the French retailer's customer database to create a loyalty card.
It is understood to be the first time Tesco has allowed Dunnhumby to use its services for another European retail chain, but the company has already worked with US grocers Kroger, electrical company Best Buy and Vodafone UK.
Jean-Michel Duhamel, director general of Groupe Casino, said: "The creation of Dunnhumby France is a very important part of our group strategy.
"After piloting new analysis and offers we are convinced that this new step will position the customer at the heart of the organisation."
Edwina Dunn, chief executive officer at Dunnhumby, said the French business hoped to benefit from "deeper customer relationships" at Groupe Casino as a result of the new venture.
According to reports, Dunnhumby plan to roll out the service to 12 countries in the future, with Dunnhumby France agreeing a 50:50 venture with Groupe Casino.
Earlier this month, Dunnhumby appointed Ivor Burns as head of FMCG for the UK and Ireland.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .