Tesco and Carrefour create strategic alliance in effort to cut prices
Grocery giants Tesco and Carrefour are to enter into a long-term, "strategic alliance" to enhance their competitiveness.
The alliance, over three years, will cover their relationships with global suppliers and the joint purchasing of own brand products.
A statement from the two companies said that the alliance will enable both companies to improve the quality and choice of products available to their customers, enhancing their competitiveness.
The two also claim that the alliance will create "significant opportunities" for their suppliers.
"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," Dave Lewis, Tesco CEO, said.
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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.
Alexandre Bompard, chairman and CEO of Carrefour, described the alliance as a "major agreement" that combines the purchasing expertise of two world leaders, "complementary in their geographies, with common strategies."
"This international alliance further strengthens Carrefour allowing it to reach a key milestone in the implementation of its strategy," Mr Bompard said.
Last month Tesco regained pole position as Ireland's biggest grocery retailer.
The grocer saw its sales here jump 3pc in the first quarter of its financial year.
That made the Irish market the best performing in the Tesco group after difficult years for the retailer during the downturn when Ireland was the laggard.