Franchise Talk

Carrefour, Landmark plans not to take off

December 19th, 2006 | Author: Jack

NEW DELHI: Talks between the world’s second-largest retail chain Carrefour and the Dubai-based Landmark group for an entry into the Indian retail sector are learnt to have fallen through.

Though the exact reason is not known, sources close to the development told ET that Carrefour may prefer to enter India in a partnership with an Indian company. An e-mail sent to Landmark CEO Micky Jagtiani on Friday did not elicit a response.

Carrefour and Landmark were in discussions for the French retail major’s entry into India through Landmark’s franchisee in the country. According to sources, the French retailer is looking at various specialty retail formats, for which it may now tie up with multiple partners.

“Initially, the retailer will focus majorly on convenient store formats in India. Carrefour’s entry into Indian retail mart will be in relatively smaller stores sized 2,500-3,000 square feet. Its entry into value and mass retail formats will come only at a later stage,” a source said.

Carrefour is also in talks for franchising agreements with a couple of specialty retailers and has already approached a well-known Indian franchiser for apparel retail. Apart from apparel, the group may enter separately into grocery and consumer durables retail.

It is also in talks with some real estate companies for a franchising agreement, possibly in the hypermarket segment. Worldwide, apart from hypermarkets, Carrefour operates in supermarket, hard discount and convenient store formats.

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