Carrefour hypermarket in Beijing. ©AFP PHOTO/TEH ENG KOON

A report indicates that French supermarket chain Carrefour plans to close its Asian outlets, worth 7.6% of its total sales, and focus on other markets.
Fresh produce industry website Fruit Net reported on July 6 that French Supermarket chain Carrefour plans to sell off its South East Asian interests and instead focus on markets where it can dominate.
When contacted a spokesperson for Carrefour refused to confirm or deny this story, saying that she was not allowed to comment on the issue.
According to Carrefour's website, Asia accounted for only 7.6% of the total €85,963 million ($108,254 million) of consolidated net sales in 2009, in comparison Latin America accounted for 13.7% and Europe (excluding France) 35.7%. France accounted for the remaining sales. Carrefour in Asia mainly sells products that appeal to local tastes along with some imported goods.
Competitors in the Asian region include Lotus and Big C. Lotus, a Thai based supermarket chain in a joint venture with British supermarket Tesco, opened its first ‘5 star hypermarket' in Shanghai, China in January 2010, according to Chinese business website Jing Daily. Jing Daily also reported that Lotus was trying to tap into the luxury hypermarket boom after poor returns in the Chinese city of Tianjin. The 5 star hypermarket will stock approximately 40% foreign produce, and over a 1000 imported wines as the company targets wealthy locals and the expatriate community.
Lotus is one of the largest foreign supermarkets in China with around 70 outlets.
Popular Taiwanese supermarket chain Big C , which as of May 2010, operates 68 hypermarkets and 67 shopping malls announced plans in March 2010 to open between 4-5 hypermarkets a year across the region. The company also reported a 2.5% increase in net sales across the first quarter of 2010, an increase of 410 million Baht (€10,041 million/$12,642 million). - Relaxnews

Published 07.07.2010