🤝 The Deal That Was
In 2018, Tesco and Carrefour teamed up to lower costs. The deal covered fresh foods, packaged goods, and non-food items. The goal? Better prices and more choice for shoppers. The agreement was set to last three years, expiring in 2021. Now, it's not being renewed.
📉 Why It’s Ending
Brexit has complicated UK-EU trade, but Tesco denies it’s the reason. Analysts believe the partnership didn’t deliver expected savings. Retailers need scale to negotiate better prices, but Tesco and Carrefour, operating in different markets, saw limited impact.
📊 The Bigger Picture
Retail alliances help fight rising costs, but they’re tricky. Tesco-Carrefour had no direct competition, yet logistics and supplier negotiations remained challenging. Other European retail alliances, like E.Leclerc and Rewe, continue, but success varies by structure.
🔮 What’s Next?
Tesco and Carrefour will now pursue separate supplier deals. Tesco may focus on UK suppliers post-Brexit. Carrefour continues its global sourcing strategy. As inflation pressures mount, both will need new ways to keep prices competitive.
Did Brexit play a bigger role than Tesco admits?
