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Abstract

In July 2018, Tesco and Carrefour, the two European retail giants, agreed to form a long-term joint purchasing alliance in the supermarket business. Through the alliance, the retail giants were planning to cover strategic relations with global suppliers and joint purchasing of own-brand products. The partnership might enhance the competitiveness of the retail giants by providing qualitative products of different variety to the consumers at an affordable rate. It would also help the retail giants to fight back against the new grocery retailer Amazon and the discounters like Aldi and Lidl. However, the Tesco-Carrefour deal might have a 'detrimental effect' on the entire supply chain including the manufacturers and producers. Addition to this, the rival retailers like Metro and Walmart had already signed purchasing agreement with Auchan and Asda respectively. This might create a competitive environment in the European retail market. Amidst such speculations, it remained to be seen how Tesco and Carrefour would create a business model to lead as well as to remain relevant to the customers over the long term. How the new alliance could outlast the competitors of the retail giants?
Location:
Other setting(s):
2018

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Abstract

In July 2018, Tesco and Carrefour, the two European retail giants, agreed to form a long-term joint purchasing alliance in the supermarket business. Through the alliance, the retail giants were planning to cover strategic relations with global suppliers and joint purchasing of own-brand products. The partnership might enhance the competitiveness of the retail giants by providing qualitative products of different variety to the consumers at an affordable rate. It would also help the retail giants to fight back against the new grocery retailer Amazon and the discounters like Aldi and Lidl. However, the Tesco-Carrefour deal might have a 'detrimental effect' on the entire supply chain including the manufacturers and producers. Addition to this, the rival retailers like Metro and Walmart had already signed purchasing agreement with Auchan and Asda respectively. This might create a competitive environment in the European retail market. Amidst such speculations, it remained to be seen how Tesco and Carrefour would create a business model to lead as well as to remain relevant to the customers over the long term. How the new alliance could outlast the competitors of the retail giants?

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Location:
Other setting(s):
2018

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