France’s Carrefour and Britain’s Tesco have announced in a press release that their purchasing partnership will officially end on December 31st 2021.
The two distributors have decided “not to extend their purchasing alliance beyond the operational frame of 3 years agreed upon in 2018.” From 2022, Carrefour and Tesco “will continue this work independently, focusing on their own opportunities.”
In 2018, Carrefour and Tesco had decided to pool the purchase of private label products. Indeed, the French group wanted to become more competitive and strengthen its share of MDD products alongside the less affordable national brands. According to the transformation plan presented 3 years ago by CEO Alexandre Bompard, the retailer was to propose a third of private label products in 2022, compared to 25% in 2018.
However, in 2020, in order to protect smaller companies, the Competition Authority limited the scope of their alliance, with the exclusion of certain products and a cap on joint purchases.
Photo: ©Paulo Whitaker