In a bid to tap into the fast-growing organised retail sector driven by growing consumer aspirations and urbanisation, French retail giant Carrefour has re-entered the Indian market in collaboration with the Apparel Group. The retail chain plans to open 50 stores while initially focusing on developing the brand’s presence in North India both through organic route as well as acquisitions.
The retail major, which was earlier operating in the country through the cash and carry model, exited India in 2014 as part of its strategy to pull out of underperforming international markets.
Patrick Lasfargues, Executive Director – International Partnership, Carrefour, told businessline, “In 2018, we decided to adopt a new strategy for international markets focusing on collaborations with local partners as franchisees. Since then we have opened in several new markets across Africa, Asia and Central Europe. So we are coming back to India with a different model, which is the franchise model in collaboration with the local partner.”
“We believe India is one of the most dynamic consumer markets, underpinned by strong economic fundamentals and immense long-term potential. India is a strategic market for us. In this evolving retail landscape, we believe there is room to open regular physical stores and we found the right partner in Apparel Group. We have a strong ambition to develop the brand in Delhi-NCR and Uttar Pradesh initially and then expand fast to other regions, depending on the opportunities,” he added. The first Carrefour store has been launched in H&S Mall in Greater Noida.
Nilesh Ved, Chairman of APPCORP Holding, owner of Apparel Group, said, “The second store is opening next month. We are in discussions for opening another 12 stores in the next 18 months in the Delhi-NCR region to attain critical mass before we move to other regions. We’re ready to grow through organic route and we are also open to grow through acquisitions. We plan to open 50 stores in another three years.”
The French retail giant’s entry also comes at a time when online shopping through quick-commerce and e-commerce has been gaining traction rapidly. “The development of e-commerce and quick-commerce is obvious in food retail, as we have seen in other markets. We will need to integrate e-commerce and quick-commerce in the most efficient and profitable way. Just as we do in France, in India too we will look at having a hybrid model, where we have the physical stores along with the online model. But, this strategy will come into play once we have opened enough physical stores,” Lasfargues said.
The retail chain is offering a range of locally sourced products including fresh produce, grocery, bakery, household essential and personal care besides fashion and accessories. “Non-food portfolio is a very important piece of Carrefour, which we want to grow significantly. Also we will be focusing strongly on developing private labels going forward,” Vaid added.