CARREFOUR EXITS RUSSIA On October 15, 2009, just four months after opening its first store in Russia, France-based Carrefour SA (Carrefour), the second largest retailer in the world, announced that it planned to exit the Russian market. The company announced, “Carrefour has decided to sell its activities in Russia and pull out of the market, given the absence of sufficient organic-growth prospects and acquisition opportunities in the short- and medium-term that would have allowed Carrefour to attain a position of leadership. This decision is consistent with the Group‟s strategy which aims at building leadership positions that will ensure strong and lasting profitable growth.”
Carrefour started the Carrefour operated through franchises in the UAE, Saudi Arabia, Oman, Qatar, Egypt, Tunisia, Algeria, and the Dominican Republic. In 1998, it acquired Comptoirs Modernes SA, which brought 790 supermarkets into its fold. In 1999, it acquired Promodès SA12, which owned several hypermarkets, supermarkets, convenience stores, and discount stores. The acquisitions helped Carrefour become the top retailer in Europe by the late 1990s.
As of 2008, Carrefour was the second largest retailer in the world and the largest retailer in Europe (Refer to Exhibit II for the list of global powers of retailing). By the end of 2008, it was operating 15,430 stores globally. It operated through different store formats like hypermarkets, supermarkets, convenience stores, hard discount stores, and cash & carry outlets (Refer to Exhibit III for Carrefour‟s store formats). Carrefour‟s revenues were at € 108.629 billion for the year ending December 2008 (Refer to Exhibit IV for Carrefour‟s country wise sales).
CARREFOUR’S PLANS FOR RUSSIA In every international market in which Carrefour operated, it essentially focused on becoming one of the top three players in terms of market share. Commenting on the criteria for entering new markets, the Chairman of the Management Board of Carrefour, José Luis Duran, said, “We‟ll look toward new markets. That means local acquisitions in countries where we
CARREFOUR EXITS RUSSIA Four months after its first store opened in Russia, the second largest retailer in the world, Carrefour revealed that it was going to exit the Russia market. Analysts stated that the two main reasons for the exit decision were Carrefour’s failing acquire of Russian-based grocery chain Sedmoi Kontinent and shareholder’s pressure on the company to focus on its core business. And for the other international retailers such as Wal-Mart and Tesco, their plan to enter the country…
Chapter 5 Carrefour S.A. Teaching Note Version: March 2007 Introduction The Carrefour case is a financial analysis case. Carrefour S.A. is one of the world’s largest retailers. During the first half of the 2000s, the company’s share prices steadily declined, despite the fact that the company reported above-average returns on equity. Students are asked to analyze Carrefour’s financial statements and segment data to find explanations for the company’s poor share price performance and to make recommendations…
Mark Lett (2011) 22:297–313 DOI 10.1007/s11002-010-9126-x Store brand and store loyalty: The moderating role of store brand positioning Mercedes Martos-Partal & Óscar González-Benito Published online: 2 October 2010 # Springer Science+Business Media, LLC 2010 Abstract Despite extensive research, the relationship between store brand loyalty and store loyalty remains uncertain. Recent research suggest a nonmonotonic relationship between store brand loyalty and store loyalty: positive up to…
Case Study – Tesco: From Domestic Operator to Multinational Giant. 1. Identify the reasons behind Tesco’s Internationalization Strategy. Tesco sought to take advantage of undeserved and immature markets, particularly in Europe and followed by Asia. Central Europe in particular was the first phase of its expansion in the post-soviet era. Tesco had achieved measurable success in the UK market which was highly regulated and competitive. Due to regulatory pressures, Tesco focused on its operations…
defending the nation’s overall interests. However, in this group there are many radicals who are always being criticized of lacking rational. For example, they always invoke people to boycott. In 2008, before Beijing Olympics, they boycotted French Carrefour due to the Tibet issue. In 2012, they boycotted Jusco, Honda and other Japanese companies due to the Diaoyu islands issue. Their actions can be seen as babyish, untutored, irrational, or even stupid; however, the overwhelming strength showed in the…
For our term paper, the two countries we decided to focus on are Brazil and India. We chose these two countries as they are both exciting, emerging economies with lots of potential for growth. However, they are also very different in terms of institutional structures and the challenges that they present for multinationals trying to do business there. India, a country located in South Asia is the world seventh largest country and the second most populous country after China, with a population…
CASE 1 Walmart has imported more than 70% of their merchandise from China and they are becoming one of the major retail companies rapidly. One of the main US grocery and discount retailer Wal-Mart has spent 17 years to be perfect their business model in China. At the first time when they got into Chinese market, they had some problem because Chinese market was complicated. However, they designed to meet what people needed in the new Chinese market. While they were researching and gathering all…
more than the standard Colombian price. Moreover, producers have received multiple benefits from NFC, which is the major shareholder of Procafecol. In 2006, Procafecol put 15.75 percent of its shares up for exclusive sale to coffee producers. This case explores the inclusive and sustainable business model of Juan Valdez® Coffee Shops, a fair trade chain linking communities of producers (NFC and others), businesses (Procafecol and other private partners), consumers (national and international) and…
