Tesco and Carrefour end partnership after 3 years

Tesco and the French supermarket Carrefour have announced the end of a three-year partnership intended to provide greater choice and lower prices for consumers.

Neither company would specify why the alliance had fallen apart, though some have speculated it has been scuppered by import costs after Brexit.

The agreement will formally end on December 31.

READ MORETesco faces £2.5bn bill after equal pay defeat

In a joint statement, the supermarkets claimed their partnership had led to “a number of joint buying opportunities”, but they will now “work independently and focus on their own opportunities”.

When asked by The Guardian, a Tesco spokesperson denied that the UK’s exit from the EU had led to the alliance’s collapse.

Shore Capital retail analyst Clive Black told the newspaper there was “little notable benefit from the alliance on an ongoing basis”.

He added that the break-up was not a surprise, given that lower food prices were not “especially evident” while Asda was owned by the American multinational Walmart.

The news comes after Tesco revealed its profits had plummeted by 20 per cent over last year.

Although its grocery sales surged during the Covid-19 pandemic, this was offset by around £900 million in coronavirus costs.



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.



Sign up to our daily newsletter to get all the latest grocery news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.