The five decades old, world’s second biggest retailer, Carrefour (pronounced: Cahr-uh-foor, meaning ‘cross roads’ in French), which till now was negotiating with the Dubai based Landmark group, for its entry into India, has decided to call off the talks and look for allying with local partner(s), according to a report published in the Economic Times.
This strategy makes imminent sense as Wal-Mart, for its India foray, has joined forces with Bharati, which through its telecom network connects to 28 million high spending consumers in every nook and corner of the country. Landmark, in comparison has neglible reach in India.
Carrefour, which employees 436,000 people, derives more than 85% of its $ 177 billion world wide revenues from its european operations, mainly operates in four major retail formats: Hypermarkets (58.8%), Supermarkets (17.8%), Hard Discount stores (8.6%) and Convenience stores (14.8%). Although, as much as 76.6% of its revenues are generated by value and mass retail formats Carrefour, according to sources, may delay its entry into these formats and initially focus on entering the country through convenient stores, each of which stores may occupy retail space of up to 3,000 square feet.
The French retail chain may also consider entering the country via the 51% FDI in single-brand retailing route. This way, the company may look at retailing a product in the Indian market after extending a private label to it.