Carrefour's Retreat from China
Case Code: BSTR593
Case Length: 14 Pages
Pub Date: 2019
Teaching Note: Available
Organization: Carrefour S.A
Themes: Market Entry & Exit, International Operations, Technology in Healthcare, Strategy Formulation
Abstract Case Intro 1 Case Intro 2 Excerpts
Carrefour Sells Major Stake in China
On June 23, 2019, France-based multinational retailer Carrefour S.A (Carrefour), one of the largest hypermarket chains in the world, announced that it had agreed to sell 80% stake in its Chinese venture for RMB 4.8 billion (US$698 million) to a leading Chinese retailer Suning.com Co., Ltd. (Suning). The agreement included several alternatives for Carrefour to sell the remaining 20% stake it held in China in future, providing it with the option of leaving the Chinese market completely.
As of 2018, Suning operated through a network of 11,064 stores and was the largest Chinese retailer. Carrefour, which entered China in the year 1995, had 210 hypermarkets and 24 convenience stores in 51 Chinese cities as of 2019. It decided to exit the country after its performance started deteriorating due to growing competition from the local retailers, both physical and e-commerce retailers...
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