Tesco and Carrefour to create long-term strategic alliance
Tesco in the UK and French grocery giant Carrefour have announced their intention to enter into a long-term "strategic alliance", sharing relationships with global suppliers, joint purchasing of own-brand products and more.
6 July 2018 | 0
A newly-announced alliance between Tesco and French grocery giant Carrefour will enable both companies to “improve the quality and choice of products available to customers, at even lower prices”, the pair have said in a joint announcement. The long-term partnership will also allow both companies to improve supplier relations and create more opportunities for all involved.
The deal comes at a time when the role of supermarkets in moderns society is in a state of change. Amazon’s takeover of Whole Foods in the USA, along with the march of Ocado in the UK and more online offerings mean that any company that fails to modernise and adapt may be facing obscurity practically overnight. A deal like this between Carrefour and Tesco is akin to the two joining forces so that if any as yet unseen threat appears before them in the near future, they should have the combined might to fight it off, one way or another.
Dave Lewis, Tesco Group CEO, said he is delighted with the alliance. “By working together and making the most of our collective product expertise and sourcing capability,” Lewis said, “we will be able to serve our customers even better, further improving choice, quality and value.”
Alexandre Bompard, Lewis’ counterpart at Carrefour, said the deal represents a great opportunity. “This strategic alliance between Carrefour and Tesco is a major agreement,” he said, “as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies.
“We have a great opportunity to develop our two brands at the service of our customers,” Bompard continued. “This international alliance further strengthens Carrefour allowing it to reach a key milestone in the implementation of its strategy.”
The alliance is expected to be formally agreed upon within around two months, with an initial three-year framework.