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Carrefour / Tesco: Even Giants Can No Longer Walk Alone

Carrefour / Tesco: Even Giants Can No Longer Walk Alone
Photo: LZ Retailytics
Carrefour and Tesco are set to create a global strategic alliance. What for? Why now? LZ Retailytics data shows how prevalent buying groups and alliances have become among Europe’s leading retailers.
Carrefour and Tesco are set to enter into a strategic global alliance. They will set up joint sourcing and purchasing agreements with suppliers. Both giants are facing headwinds at home and have had to downsize their global presence threatened by new global behemoths. Beyond the most recent move, buying alliances are a growing trend within the increasingly consolidated European retail industry.

LZ Retailytics data shows that only four out of Europe’s 20 largest retailers have no buying group affiliation or alliance. Only retailers with substantial organic sales growth are able to ride on their own, with the rest partnering among themselves or within buying groups to keep pace... Even giants can no longer walk alone.

Partnerships and the sharing of expertise within the industry is a trend that will become increasingly critical to success going forward. Even so, marriages of convenience will only be effective as long as both retailers share a similar philosophy, common goals and trust.

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Topics: Carrefour Tesco