Leading supermarket chain Tesco and major French multinational retailer Carrefour have announced their intention to form an alliance they say will lead to lower prices.
The “long-term, strategic alliance” will cover the relationship with global suppliers, the joint purchasing of own brand products and goods not for resale. It will be governed by a three-year operational framework.
The deal will “enable both companies to improve the quality and choice of products available to their customers, at even lower prices,” according to a release from Tesco.
It added the agreement would also allow both companies “to strengthen their relationships with their suppliers and create significant opportunities for those suppliers.”
Each company 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.
“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,” said Tesco chief executive Dave Lewis.
Carrefour CEO and chairman Alexandre Bompard described the alliance as “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,” he said.