Carrefour and Tesco’s purchasing alliance to be operational by October

The French retail giant, Carrefour, and the British supermarket company, Tesco, have confirmed their purchasing alliance is expected to be operational by October this year.

The firms announced their strategic partnership, which they have now formally entered, in July. Under the companies’ agreement, the purchasing alliance will continue for three years.

The alliance aims to achieve better deals with large suppliers – such as Nestle, Procter & Gamble, Unilever, and Danone.

Through the partnership, Carrefour and Tesco seek to lower the costs of products in order to compete with prices in the industry.

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The deal also aims to allow the firms to make joint purchases of goods and store equipment, including cleaning supplies and trolleys, as well as improve quality and diversify commodities – offering more products to customers.

The British groceries retailer initially announced the news following the merger between its UK rivals Sainsbury’s and Asda – which promised to drop prices in everyday products.

The Autorite de la Concurrence has confirmed it will be assessing how Tesco and Carrefour’s agreement will affect the industry, both for suppliers and consumers.

The regulator has also conducted investigations into the effects of deals made between firms such as Auchan, Casino, Schiever, Metro, and Systeme U.

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