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Carrefour, Tesco Deal Could See Suppliers Squeezed: Analysis

Published on Jul 4 2018 12:40 PM in Retail tagged: Featured Post / Carrefour / Tesco / Paywall / Purchasing / Alliance

Carrefour, Tesco Deal Could See Suppliers Squeezed: Analysis

A deal between Carrefour and Tesco to team up on global purchasing will help them to not only cut prices, but also expand their own-label ranges, tightening a squeeze on major-brand producers, such as Nestlé and Kraft Heinz.

The Carrefour-Tesco alliance will reset relationships with global suppliers like Unilever, Nestlé and Procter & Gamble, at a time when they are already battling sluggish demand and start-up rivals.

In a further blow to major consumer goods firms, the pair will also jointly source own-brand products, sales of which are growing rapidly in Europe due to the expansion of discounters like Aldi and Lidl, which mostly stock private-label goods.

Detrimental Effect

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