[3 July/NZ Herald]

Two of Europe’s biggest supermarket chains, Tesco and Carrefour, were working together to get better deals out of suppliers due to increased competition from internet traders. They announced a long term strategic alliance that would govern relations with global suppliers and the joint purchasing of their own-brand goods. The goal was to improve quality and choice of products and enhance competitiveness. Carrefour CEO, Alexandre Bompard, said the alliance was a major agreement as it combined the purchasing expertise of two world leaders. Tesco scaled back its international expansion plans and was facing increased competition. The link between Tesco and Carrefour reflected their own retreat from international expansion. Poland would be the only market where the two retailers continued to compete head to head.