Tesco-Carrefour alliance operational from October

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Tesco Carrefour

Tesco and Carrefour have confirmed that their new strategic alliance will become operational in October.

Last month, the British and French retailers – regarded as two of the biggest in Europe – announced a global purchasing alliance that demands better terms from major suppliers and the joint purchasing of own-brand products and goods not for resale.

The alliance ultimately aims to cut costs in an attempt to claw back market share in their respective countries from German discount grocers Aldi and Lidl.

The grocery giants said they expected their partnership, which will be governed by a three-year operational framework, would become operational in October.

Despite the lack of overlap in the two retailers’ respective trading territories, last month French competition authority Autorite de la Concurrence has said it would investigate whether the alliance could threaten competition rules.

The authority also said it was looking into the competitive impact of the retail giants’ purchasing agreement and assess its effect on the food sector – both for suppliers and consumers.

Additionally, suppliers affected by the deal as well as supermarket competitors were reportedly due to be interviewed as part of the probe.

Tesco and Carrefour have combined annual sales of £130 billion.

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