Tesco PLC and Carredor SA, the largest grocers in Britain and France, respectively, have responded to Amazon’s continuing threat to their business enterprises by joining forces.
They expect the collaboration to allow them to jointly source certain products, lower prices, raise quality and broaden their offerings. The deal will give them more coverage with suppliers and joint purchasing of store-brand products and goods not for resale, like their cleaning supplies. As we’ve discussed in previous posts on the topic, Amazon jumped into the chain retail food enterprise by their purchase of Whole Foods last year and has since slashed prices at the stores and used the Whole Foods network to ramp up its online grocery business. Amazon has also focused on increasing its fresh food delivery service in the U.K. and France, where those amenities are increasingly popular. Thus, Amazon’s inroads into the grocery sector continue to be a serious cause of concern for supermarket chains both in the U.S. and abroad. Without a doubt, there’s more to this story coming up – so, To Be Continued . . .