UK: Tesco and Carrefour say they have formed a “strategic” joint purchasing alliance to cut costs and lower prices.
The two major supermarket groups say the alliance will cover “the strategic relationship with global suppliers, the joint purchasing of own-brand products and goods not for resale.”
The supermarkets say it will enhance their competitiveness by enabling both companies to improve the quality and choice of products at even lower prices.
“This agreement will also allow both companies to strengthen their relationships with their suppliers and create significant opportunities for those suppliers,” the companies said in a joint statement.
The alliance is expected to be formally agreed within the next two months. It will be governed by a three-year operational framework.
“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,” commented Carrefour Group chairman and CEO Alexandre Bompard.
Dave Lewis, Tesco Group chief executive, added: “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.”