Carrefour, France's main supermarket group, and Tesco, Britain's biggest retailer, on Monday announced a partnership plan aimed at boosting competitiveness and cutting costs in a way to face fierce competition.
Europe's two leading supermarkets groups unveiled "their intention to enter into a long-term, strategic alliance (that) will cover the strategic relationship with global suppliers, the joint purchasing of own brand products and goods not for resale," they said in statement.
The alliance, which will be formally agreed in the next two months, is set to help the two partners to sharpen their competitiveness by improving the quality and choice of products available to their customers, at even lower prices.
Under the agreement, Carrefour and Tesco said they will continue to work with supplier partners at a local and national level.
"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," said Alexandre Bompard, Chairman and CEO of Carrefour group.
In his turn, Dave Lewis, Tesco Group Chief Executive, 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."
