🎰 Carrefour and Tesco up stakes with new purchasing alliance - Reuters

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Jefferies estimated the deal could lead to initial total savings of million pounds or million euros. It is unlikely to include fresh food as both companies will still work with suppliers at a local and national level. European groups Auchan Retail, Casino, Metro and Schiever agreed their own purchasing partnership last week. Suppliers said it posed a threat to their survival. Some analysts speculated that the Carrefour-Tesco alliance could even be the precursor to a merger between the two. PA and others to help the French and British groups to compete hard on price. It has cut costs, invested in stores and bought Booker to expand into supplying restaurants, cafes and local stores. United States. PA Monoprix chain in March became the first local retailer to sell groceries via Amazon in the Paris area. Tensions have been rising between retailers and suppliers as consumers demand lower prices. Dominique Vidalon , Kate Holton.{/INSERTKEYS}{/PARAGRAPH} Discover Thomson Reuters. It has already agreed a five-year purchasing alliance with French supermarket firm Systeme-U to make Carrefour the biggest buyer in its home market where competition has been fierce. Analysts warned the two groups needed to avoid triggering a price war. To be formally agreed over the next two months and to run for an initial three years, the alliance will cover the joint purchasing of own-brand products and goods used by the companies, as well as marketing and data collection. A group of European supermarkets have boycotted Nestle this year over a price dispute. N Asda, the number three player. The German discounters, operating in Europe, the U. {PARAGRAPH}{INSERTKEYS}L have agreed to form a global purchasing alliance to demand better terms from major suppliers in the latest attempt by the industry to drive down costs. Directory of sites. EU] [. Mella Frewen, director general of industry body FoodDrinkEurope, warned that the creation of such huge buying alliances threatened her members. Carrefour and Tesco have limited overlap and in the two markets where they do - Poland and China - it will not apply. In January it announced plans to cut costs and jobs, boost e-commerce investment and seek a partnership in China, in an effort to lift profit and revenue and beat domestic rivals in the race to develop digital shopping products. Carrefour has issued cautious targets for this year after weakness in its home market weighed on sales growth in the first three months of the year. Shares in both Carrefour and Tesco made only modest gains, with European stock markets under pressure. These account for around 50 percent of Tesco sales against 25 percent for Carrefour.