INDIA - French multinational retailer Carrefour is set to make its return to the Indian retail market through a franchise partnership with Dubai-based retailer Apparel Group, marking its re-entry a decade after its exit. 

The first Carrefour stores are expected to open in the National Capital Region (NCR) by 2025.

Carrefour initially entered India in 2010 after the government allowed foreign companies to operate in the cash-and-carry format. However, the company exited the market in 2014, citing a lack of business opportunities and its inability to find a local partner to expand into multi-brand retail. 

At the time, Carrefour operated five wholesale stores across Delhi, Jaipur, Agra, Meerut, and Bangalore.

In a joint statement, Carrefour Executive Director of International Partnership Patrick Lasfargues expressed optimism about the company's return, stating, “Thanks to this partnership, we are very happy to launch in India and grow our footprint in one of the fastest-growing economies in the world.” 

He further emphasized that the company would introduce multiple store formats to adapt to India’s dynamic retail landscape.

Carrefour plans to launch its exclusive brands in North India initially, with ambitions for nationwide expansion. 

The franchise stores will offer a range of products, including groceries, fresh produce, household goods, electronics, and clothing, depending on the store format. This initiative is part of Carrefour’s broader international strategy, which aims to expand into over ten new countries by 2026.

Apparel Group’s role

Founded in 1996, Apparel Group operates more than 2,300 stores across 14 countries, managing over 85 brands in retail and food and beverage sectors. 

The group has a strong presence in the Middle East, Southeast Asia, Africa, and India, with over 250 stores in the Indian market. 

“We plan to open our first Carrefour stores during the summer of 2025. Our goal is to offer the best products at very attractive prices to all Indian customers and make Carrefour their preferred choice for shopping,” its owner and chairman, Nilesh Ved, expressed excitement about the partnership.

India’s retail market and challenges

Carrefour’s re-entry comes at a time when India's retail market is undergoing rapid transformation, driven by urbanization and increased consumer spending power. 

With a population of over 1.4 billion, India presents an attractive opportunity for international retailers.

However, the Indian retail sector poses challenges for foreign companies due to local regulations. 

The country’s multi-brand retail sector opened to foreign firms in 2012, but stringent conditions such as local sourcing requirements and state-level decisions on retail policies have deterred many international players from entering the market.

Despite these challenges, Carrefour is optimistic about its return, with plans to adapt its retail formats to meet the needs of Indian consumers. The collaboration with Apparel Group is expected to help Carrefour cruise through the complexities of the Indian retail market and establish a foothold in one of the world’s fastest-growing economies.

Carrefour’s comeback aligns with its international growth strategy, as it seeks to expand its presence across new markets. In early 2024, Carrefour entered exclusive negotiations with Groupe Intermarché to acquire 31 stores in France, highlighting the company’s global expansion ambitions.