UK-based Tesco and France-based Carrefour have announced an intention to enter into a long-term, strategic alliance. The retailers have said they expect the alliance will be formally agreed in the next two months.
Alliance to cover three areas
Carrefour and Tesco said the alliance would cover:
- Strategic relationship with global suppliers
- Joint purchasing of own brand products
- Joint purchasing of goods not for resale
The retailers said they see the alliance being governed by a three-year agreement.
Explaining the rationale behind the alliance, they said they expect it ‘to improve the quality and choice of products available to their customers, at even lower prices thereby enhancing their competitiveness.’
Both stressed that each would ‘continue to work with supplier partners at a local and national level.
Chief executives’ statements
Discussing the alliance, Tesco’s chief executive, Dave Lewis, said: “ I’m delighted to be entering into a strategic alliance with Carrefour. By working together and making the most of our collective product expertise and sourcing capability, we will be able to serve our customers even better, further improving choice, quality and value.”
Meanwhile, Carrefour’s chief executive, Alexandre Bompard, said: “This strategic alliance between Carrefour and Tesco is a major agreement as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies. This agreement is a great opportunity to develop our two brands at the service of our customers. This international alliance further strengthens Carrefour allowing it to reach a key milestone in the implementation of its strategy.”
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