You are here: Home - Investing - Experienced Investor - News -

Tesco and Carrefour tie-up is good news for investors, says analyst

0
Written by:
02/07/2018
Tesco's strategic partnership with French supermarket giant Carrefour should be "well received" by shareholders, an analyst has said. 

Tesco, the UK’s biggest supermarket, today announced plans to join forces with French rival Carrefour in a move that aims to lower prices and boost both brands’ competitiveness.

The two grocers are entering a “long-term strategic alliance” which should enable both companies to negotiate better terms with their major product suppliers.

The partnership, which is expected to be formally agreed within the next two months, will lead to joint purchasing of own brand products.

Tesco said it would enable both companies to “improve the quality and choice of products available to their customers, at even lower prices”.

Ian Forrest, investment research analyst at The Share Centre, said the news should be “well received by Tesco and its shareholders”.

He said: “The stock has already seen a good rise over the past year and this agreement should aid the continuation, especially in the battle with discounters such as Aldi and Lidl, as well as the growing challenge from Amazon. The news comes shortly after the group’s decision to streamline its business through removing well-known brands in a bid to beat Aldi and Lidl and elsewhere, the grocer has just days left of Tesco Direct before it closes for good.

“Last month, Tesco reported its tenth consecutive quarter of rising sales and confirmed the steady recovery seen under CEO Dave Lewis. Investors backing the management and the signs of improvement in recent results will have to be patient, but could be rewarded further in the near-future.”

Dave Lewis, Tesco Group chief executive, said: “I’m delighted to be entering into a strategic alliance with Carrefour. By working together and making the most of our collective product expertise and sourcing capability, we will be able to serve our customers even better, further improving choice, quality and value.”

Alexandre Bompard, chairman and CEO of Carrefour Group, said: “This strategic alliance between Carrefour and Tesco is a major agreement as it combines the purchasing expertise of two world leaders, complementary in their geographies, with common strategies.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2267340-smartmeterkettle
Just a third of Brits have an energy smart meter

Despite campaigns by the government to promote their benefits, just one in three homes has an energy smart meter, research...

Close