Tesco and Carrefour announce joint purchasing tie-up | Progresiv
Tesco and Carrefour have announced plans to enter into a “long-term, strategic alliance”, with the aim of getting better deals from multinational suppliers, cutting costs, and combating increased competition in their domestic markets. 
The two sides said the agreement will initially last for three years and will cover their “strategic relationship with global suppliers, the joint purchasing of own brand products and goods not for resale”. It is hoped the tie-up will be formally agreed upon within the next two months.
The groups said they expect the deal to help improve the quality and choice of products offered to consumers, at “even lower prices”. They also stressed that the deal will help strengthen their relationships with suppliers and “create significant opportunities for those suppliers”, adding that both sides will continue to work with suppliers at a local and national level.
Dave Lewis, Group Chief Executive of Tesco, said: “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 recently revealed an ambitious transformation plan to cut 2 billion euros in costs annually by 2020. Its Chairman and CEO, Alexandre Bompard, commented: “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.”
The deal marks the latest purchasing tie-up between major European supermarkets in the face of heightened competition from the discounters and online players. It is also likely to be seen as Tesco’s reaction to the proposed Sainsbury’s-Asda merger. (www.kamcity.com)
