Tesco has formed a strategic alliance with French supermarket chain Carrefour to enhance competition

Tesco and Carrefour are teaming up to beat the competition, in a strategic alliance announced this morning.

A joint statement issued by the companies say the alliance will cover their relationships with global suppliers, its joint purchasing of all own-brand products, and any goods not for resale.

The deal should force prices for own-brand products at the popular retailers to go even lower, in a bid to enhance their competitiveness in the market.

Set to be formally agreed within the next two months, the alliance will be governed by a three-year operational framework organised by the companies.

Tesco's chief executive Dave Lewis 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.

The company announced last week that it has begun trials on technology for a checkout-free shopping experience, in a similar style to Amazon's Amazon Go store in Seattle.

The news also comes as Tesco axed its money-saving price-match guarantee on certain big name brands, aiming to focus on lower prices across the board instead.

The deal could be a sign of Tesco cementing its connection to European suppliers amid a tense time for Brexit negotiations.

The retailer is following in the footsteps of its British rivals Sainsbury's and Asda, who announced a tie-up deal earlier this year that set tongues wagging and share prices soaring.

Carrefour's chairman and chief executive Alexandre Bompard said that while he viewed the alliance as a great opportunity for both brands to develop, the deal particularly favours Carrefour's aims of "reaching a key milestone" in the implementation of its international strategy.