Carrefour is set to re-enter the Indian market after exiting in 2014, partnering with Dubai-based Apparel Group to launch retail stores instead of its previous wholesale model. The retailer will initially focus on North India, starting with a store in the National Capital Region in 2025, with plans for nationwide expansion. Store sizes will range from 8,000 to 30,000 square feet. This move is part of Carrefour's strategy to enter 10 new countries by 2026. It remains unclear if Carrefour will sell only food or a broader range of products.
French retailer Carrefour is set to re-enter the Indian market after a decade, this time through a franchise agreement with Dubai-based Apparel Group. Apparel Group is known for retailing brands such as Victoria's Secret, Charles & Keith, Aldo, and Bath & Body Works in India.
Carrefour, a leading global food retailer, had previously exited India in 2014 after four years of operating as a wholesaler. The company struggled to scale up and achieve profitability due to India's restrictive retail laws, which were designed to protect small neighborhood stores, known as Kirana shops, from direct competition.
Carrefour's re-entry into the Indian market will involve a retail format with store sizes ranging from 8,000 to 30,000 square feet. The company will start by focusing on North India, with plans to expand nationwide over time. The first store is scheduled to open in the National Capital Region (NCR) in 2025.
Patrick Lasfargues, Carrefour's Executive Director of International Partnership, indicated that the company plans to expand using various formats throughout India to adapt to the local retail environment. He highlighted that India is a key component of Carrefour's International Partnership 2026 development plan, representing a significant step forward in the company's strategy to enter more than 10 new countries by 2026.
Carrefour has not yet clarified whether it will offer only food products or a broader range of goods. Under current Indian regulations, 100% foreign direct investment is permitted in food retail if the items are locally sourced and manufactured.
Carrefour's re-entry into India as a retailer through a franchise with Apparel Group represents a major shift from its previous wholesale model. Targeting North India initially and planning nationwide expansion, Carrefour aims to leverage its retail format with stores sized between 8,000 and 30,000 sq ft. This initiative aligns with Carrefour's goal to enter over 10 new countries by 2026. While the product range remains unspecified, the move will benefit from India's allowance of 100% foreign direct investment in locally sourced food retail.
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