Bricks and mortar retailers are fighting back against the onslaught of Amazon and the discounters – or so says the latest partnership formed between supermarket giants Tesco and Carrefour. The UK and French chains have teamed up in a purchasing alliance to enable them to better compete in the price war, according to a report published by Reuters.
The global alliance is designed to force major FMCG suppliers such as Unilever, P&G and Nestle to grant more favourable terms to the pair, enabling them to go head to head with Amazon and discounters such as Aldi and Lidl. Tesco and Carrefour boast combined annual sales of US$170 billion.
“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 Carrefour CEO, Alexandre Bompard.
Added Dave Lewis, Tesco Group Chief Executive, “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.”