Dave Lewis, Tesco chief executive, said the charges that firms must pay on their buildings played a "large part" in sending some retailers to the wall.
These are external links and will open in a new window Close share panel Image copyright Getty Images Tesco says it is planning a "strategic alliance" with French retail giant Carrefour, as the two try to use their joint buying power to cut costs and offer lower prices to customers.
The two plan a "strategic relationship" when dealing with global suppliers, and the tie-up will also mean sharing their own-brand products. The move comes as retailers face an increasingly competitive environment. Carrefour operates 12, stores across more than 30 countries, employing aboutpeople worldwide.
The two have been talking for two years and, although no formal agreement has yet been signed, they said they were hoping to confirm a deal in the next two months.
Tesco chief executive Dave Lewis said: Last year, Amazon bought upmarket grocer Whole Foods. Aldi and Lidl have vast operations and sales across Europe. This gives them huge buying power with suppliers. With their no-frills stores and limited, mostly own-branded, product range, their business model makes it very difficult for the big, traditional retailers to match their prices.
There are a number of big buying groups in Europe. For instance, Morrisons is part of the AMS Sourcing group which enables it to buy some own branded products with other companies.
All the big traditional supermarkets are trying to cut costs and improve profitability as they adapt to an array of pressures and changes which are reshaping the industry.
Tesco will be hoping this move will improve its offer. Harder fight "Another price war is now looming in the UK supermarket sector," said Laith Khalaf, senior analyst at Hargreaves Lansdown.
Own-brand ranges give supermarkets greater control and the potential for higher margins, he added. Across the British supermarket sector there is a shift towards more own-label products, suggesting the big brands will have to fight harder for shelf-space.
It recently recorded its 10th consecutive quarter of rising sales and said its growth plans were on track.Tesco PLC, through its subsidiaries, operates as a food retailer. The Company offers online retailing, brick and mortar supermarkets, and a private-label brand of products.
Tesco provides its. Tesco's history since In we entered the US under the name Fresh & Easy, opening stores in southern California, Arizona and Nevada.
Groundwork is a charity working locally and nationally to transform lives in the UK’s most disadvantaged communities read more. Harder fight "Another price war is now looming in the UK supermarket sector," said Laith Khalaf, senior analyst at Hargreaves Lansdown.
"The latest Tesco partnership looks like a direct response.
The first own-brand product sold by Jack was Tesco Tea - before the company was called Tesco. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack's surname.
Criticism has been directed at Tesco from various groups, including national organisations, trade bodies, individuals, consumer groups and watchdogs, particularly since the early s. One of the biggest criticisms it faces is the perceived threat it poses to small private owned businesses due to the monopoly it imposes over products.