Tesco and Carrefour have announced they have ended their purchasing alliance after three years.
The retailers said they had taken the decision “not to extend their purchasing alliance” and the agreement will formally end on 31 December 2021.
In a statement the retailers said: “Over the last three years, Carrefour and Tesco have benefited from a number of joint buying opportunities across food and general merchandise categories, enabling access to new suppliers, new sources and new products.
“Moving forward, both companies have agreed that they will continue this work independently and focus on their own opportunities, building on the experience and the progress made during the alliance period.”
Tesco and Carrefour entered into the purchasing alliance in 2018 to create strategic relationships with global suppliers, and manage the joint purchasing of own-brand products and goods not for resale.
In a joint statement at the time the retailers said: “The alliance will enable both companies to improve the quality and choice of products available to their customers, at even lower prices thereby enhancing their competitiveness.
“This agreement will also allow both companies to strengthen their relationships with their suppliers and create significant opportunities for those suppliers.”
However, Dap Wijeyeratne, principal at Efficio, told SM at the time it was “not a given” that Tesco and Carrefour would be able to find savings by combining spend with common suppliers.
Last week, the British Retail Consortium warned that an increase in global food prices and shipping costs would “filter through in the second half of this year”.
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