A French giant returns to India after 12 years

French retail giant Carrefour is set to return to India after a 12-year absence. The country's retail market has shifted from neighborhood stores and supermarkets to quick commerce, with major players like Reliance, DMart and digital platforms building extensive distribution networks. Carrefour sees India as an attractive market due to its rapid expansion and the absence of a single dominant retail format.

The retailer's second attempt is focused on building a profitable, locally-adapted omnichannel business, rather than simply launching an old hypermarket.

Carrefour's first attempt in India in 2010 did not yield profitable results, as the business neither made profits nor incurred losses. At that time, foreign retailers were restricted from selling directly to consumers due to restrictive regulations, making cash-and-carry wholesale stores the only viable option. However, the regulatory environment has changed, and Carrefour has returned through a franchise partnership with Dubai-based Apparel Group.

The first consumer-facing store opened in Greater Noida's Boulevard Walk in late 2022, covering over 50,000 sq ft and featuring more than 15,000 SKUs.

India's retail market is projected to exceed Rs 190 lakh crore by 2034, growing from Rs 35 lakh crore in 2014, according to a BCG-Retailers Association of India report. Over 58% of purchase journeys remain offline, despite the rapid growth of digital commerce. Carrefour aims to establish productive stores first and layer digital demand onto them, utilizing the stores as delivery infrastructure for quick commerce.

The retailer is not returning to build the traditional hypermarkets of its past. Instead, Carrefour expects its most productive Indian format to be between 15,000-25,000 sq ft, with the possibility of testing even smaller supermarkets. The company has effectively started with a clean slate, designing its assortment for India to combine international products with locally sourced groceries, fresh food, bakery, household goods, and personal care.

This localisation is essential, as price remains a defining feature of Indian grocery retail, with discounts ranging from 30-50% from maximum retail prices.