When Tesco, UK’s biggest retailer, recently announced it was entering into a three-year strategic alliance with France’s biggest retailer, Carrefour, it sent shockwaves across the retail sector.
France’s peak competition regulator has launched a probe into the strategic alliance between Tesco and Carrefour. The Autorite de la Concurrence said it would investigate whether the deal between the biggest retailers from the UK and France respectively could threaten competition rules. READ MORE: COMMENT: What’s behind the surge of collaborations in retail?
An influential credit ratings agency believes Tesco’s strategic alliance with French grocery giant Carrefour and Sainsbury’s proposed merger with Asda could place pressure on smaller grocery retailers. Moody’s said the deals would squeeze suppliers, who will then look to make up lost profits from smaller grocers such as Iceland and Ocado. “Lower purchasing costs for the retail alliances will translate to lower revenue for suppliers overall, even if the alliances enhance volumes for some suppliers,” the firm said in a research note
Tesco’s UK and Ireland boss is stepping down from the board after being diagnosed with throat cancer.
Retailers have enjoyed a major sales boost thanks the England’s continued World Cup campaign and one of the hottest summers in decades. Tesco reportedly saw BBQ food, beer, wine and ice cream sales jump over the last week, a trend it has predicted to continue in the run up to England’s match with Sweden on Saturday
The British Retail Consortium (BRC) has continued its battle against business rates and is calling for a three-year freeze on increases. The industry body said that the retail industry “shoulders far more than its fare share” of rates bills and that the tax was “leading to store closures”.
In the first three months of this year, the Office for National Statistics (ONS) reported that unemployment rates in the UK have hit their lowest levels since 1975. Over the same period, the retail sector reported 21,413 job losses, marking the most brutal quarter for retail employees since the depths of the last recession.
Tesco has delivered its 10th consecutive quarter of sales growth, thanks to an uptick in like-for-likes and its newly-consolidated Booker division. For the 13 week period ending May 26, Tesco recorded a 1.8 per cent increase group-wide like-for-like sales growth, with UK & Ireland sales rising 3.5 per cent. On its own, Tesco’s UK market recorded a 2.1 per cent sales rise.
Tesco has appointmented Guus Dekkers as its new chief technology officer to replace Edmond Mesrobian who is resigning. Dekkers will join Tesco on April 16, reporting directly to group chief executive Dave Lewis. Meanwhile, Mesrobian is returning to his home city of Seattle with his wife Holly and their four children
The controversy surrounding Sainsbury’s proposed changes to staff pay has continued to develop as Labour MP Siobhain McDonagh calls them “deplorable”.