Tesco and Carrefour have joined forces to buy products over the next three years in an effort to boost profitability in the face of heightened competition.
The alliance will cover the strategic relationship with global suppliers, the joint purchasing of own-brand products and goods not for resale.
The retailers said that the partnership will enable both companies to improve the quality and choice of products available to their customers, at even lower prices, thereby enhancing their competitiveness.
Carrefour, Europe’s largest retailer, and Tesco will continue to work with supplier partners at a local and national level. It is anticipated that the alliance will be formally agreed within the next two months.
Tesco CEO 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.”
Alexandre Bompard, CEO of Carrefour, added: “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.”
Earlier this year Carrefour agreed an e-commerce partnership with Google, which will make groceries from Carrefour supermarkets available through Google’s French shopping website from 2019.