France’s Carrefour plans 150 hypermarts

Carrefour SA, the French retail chain, will set up around 150 hypermarkets in India, French daily Le Figaro said in a report on Tuesday.

Carrefour, which is the largest retailer in Europe, is believed to have signed an alliance with Kishore Biyani-led Future Group to set up hypermarket franchise stores in India.

Carrefour officials could not be contacted despite repeated attempts. An email query sent to the company also did not fetch any response.

Carrefour had in late 2007 set up two divisions — Carrefour WC&C India (for wholesale or cash and carry) and Carrefour India Master Franchise Company — to start India operations and has since then been scouting for a strong retail partner.

Speculations of the group signing a joint venture with Kishore Biyani-led Future Group are rife. Media reports said, as per the deal, Future Group will open at least 150 and up to 300 Carrefour-branded hypermarkets over 5 years.

Each hypermarket is estimated to be 50,000 sq ft plus in size.   

Kishore Biyani, founder, Future Group, was unavailable for comment, though he has been denying the partnership for some time now.

Future Group, the country’s largest retailer, runs formats such as Pantaloon, Big Bazaar, Food Bazaar, Central and others.

According to the terms of the deal with Carrefour, Future Groupwill act as a master franchisee, utilising the French retailer’s brand, expertise and technical know-how; it will pay a royalty in return.

Carrefour internationally has admitted that it has signed on a partner in India and the announcement could take a few weeks.
Meanwhile, Carrefour is looking at starting its first cash-and-carry outlet in Delhi this year.

Other cash-and carry players in India include US’ Walmart, UK’s Tesco and another international company, Metro.