A long term relationship will see the two supermarkets making joint purchases of own brand products and goods not for resale. The deal will be governed by a three-year operational framework, and will seek to make the two supermarkets more competitive in the wake of the merger proposal between Sainsbury’s and Asda.
Both companies say they will continue to work with their respective supplier partners at a local and national level.
Dave Lewis, Tesco CEO, said: “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.”
Alexandre Bompard, chairman and CEO of Carrefour, said: “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.”
The alliance is set to be formally agreed within the next two months, when the partnership will begin.