Tesco and Carrefour have announced their plan to enter into a long-term, strategic alliance to tap their collective product expertise and sourcing capabilities.
The scope of this alliance will cover a strategic relationship with global suppliers, joint purchasing of own brand products and goods not for resale.
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The alliance, with a three-year operational framework, will allow the retailers to boost the quality and selection of products to be sold at lower prices, which will inturn bolster their competitiveness.
Tesco Group 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.”
Carrefour Group chairman and CEO 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.”
This deal will also enable the two companies to bolster their relationships with suppliers as well as create opportunities for them.
The firms will work with supplier partners, both at local and national levels.
The alliance is expected to be formally agreed within the next two months.
After a formal agreement, the two companies will then begin to work towards realising the benefits.
