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Tesco and Carrefour partnership 'to strengthen supplier relationships'

The largest retailer in the UK, Tesco, has joined forces with its French counterpart, Carrefour, to build an alliance around purchasing and suppliers.

A formal partnership is expected to be agreed within the next two months, which will see the two businesses enter what is described as “a long-term, strategic alliance” covering relationships with global suppliers, the joint purchasing of own products and goods not for resale.

It will be governed by a three-year operational framework.

A joint statement from the retailers said the alliance will enable both companies to improve the quality and choice of products available to their customers, at even lower prices “thereby enhancing their competitiveness”.

They argued that the arrangement will strengthen both companies’ relationships with their suppliers and create significant opportunities for those suppliers – but they also acknowledged they will continue to work with supplier partners at a local and national level.

Dave Lewis, Tesco CEO, 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."

Alexandre Bompard, chairman and 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."

Since the start of the year there have been several grocery partnerships announced involving UK grocers. Tesco itself has finalised its merger with the UK’s largest wholesale business, Booker, while Sainsbury’s and Asda continue ironing out issues ahead of their proposed merger.

Online grocer Ocado has also agreed tech infrastructure partnerships with a range of supermarket businesses around the world, including US retailer Kroger.

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