Carrefour exits India

Carrefour is a French multinational retailer headquartered in France. It is one of the largest hypermarket chains in the world. It operates mainly in Europe, Argentina, Brazil, China, UAE, and Saudi Arabia. Carrefour operates cash and carry stores in India under the name “Carrefour Wholesale Cash & Carry.” The first store opened on December 2010 in Delhi. Then it was followed by a store in Jaipur, Meerut, Agra, and Bangalore.

Before September 2012, the FDI policy in India did not allow foreign companies to open multi-brand store. However, 100% FDI in cash and carry was permitted. As a result, Carrefour opted for cash and carry route to establish their presence in India. In September 2012, the new FDI policy allowing up to 51% FDI in multi-brand retail was introduced which would benefit Indian Farmers and consumers positively in long run.

Recently, France largest retail store Carrefour will shut its Indian operations and close its wholesale stores in the country. Carrefour will exit from underperforming markets including Singapore, Malaysia, and Greece. Company will now focus on their key markets in China, Brazil, and Europe. There are no reasons known of shutting stores in India but it was said in May that company is working on ways to withdraw from India after an eventual BJP victory. Company’s five stores lose business of $17 million in 2012.

Wal-Mart, the world’s largest retailer, had last year shelved its plans to open a retail store in the country. Wal-Mart is now focusing on opening wholesale stores in the country and recently launched an e-commerce venture in India. Following the Indian government’s decision to allow foreign companies to own a 51 percent stake in multi-brand retail segment, only British supermarket operator Tesco has announced its plans to open stores in the country. Reliance Retail and Bharti Enterprises are in talks to buy India assets and readymade cash and carry stores of world second largest retailer Carrefour.