Why is carrefour leaving singapore

In , it entered Brazil. In , Carrefour developed the hard discount store format under the banner Ed in France. The store offered a limited range of products at very low prices. In order to reap the benefits of this growth, Carrefour started its Asian operations by entering Taiwan in Initially, Carrefour planned a hypermarket spread across sq. But on analyzing the Taiwanese market, Carrefour realized that Asian markets were entirely different from other markets in terms of store layouts, products offered, and frequency of shopping.

Also, the customers were highly price sensitive. So Carrefour decided to adopt the kind of store layouts, products assortment range, and management culture that would be suitable to the local environment Because of the differences in the currency exchange value between the Malaysian Ringgit and the Singapore Dollar , Singaporeans often shopped at Malaysia.

Carrefour noticed that a huge number of customers from Singapore visited its stores located in Kuala Lumpur and Johor Bahru in Malaysia. This made Carrefour open another store in the area.

Carrefour then decided to study the Singapore market. The study showed that compared to the people of other Asian countries, the disposable income levels of the Singaporeans were high, and the market had a lot of potential. UM Malaysia recently retained its media business with Carrefour Malaysia. A media veteran said Carrefour's positioning is trapped between competitors targeting affluent audiences and the mass market.

In Thailand, he noted that there are a couple of big local players in the same category. Prior to the asset disposal news in , Carrefour exited Japan and Korea to focus on bigger and fast-growing markets such as India.

Like many other retailers in Europe and the United States, it has been struggling due to challenging economic conditions. Carrefour also recently agreed to sell its stores in Colombia to Chilean retail company Cencosud.

While the company has said that it will continue to stay in Brazil and China, analysts expect it to dispose of its operations in Indonesia, Turkey, Romania and Taiwan as well. Igarashi will take on the role of president and CEO effective January 1, Tim Andree to become non-executive chairman. Both its stores were located in downtown areas and Carrefour incurred high rents on them.

But its competitors had outlets in densely populated suburbs and residential localities. They were also quick to come out with smaller hypermarkets, which attracted several customers. Even after operating in the country for fifteen years, Carrefour found that it was not among the top retailers in the county. Nor did it not find many opportunities to grow its business.

Carrefour therefore decided to exit Singapore in With the exit, its Southeast Asian sojourn came to an end as it had already made an exit from Thailand, Malaysia, and Indonesia. Case Study Volumes Collection. Business Reports Link:- Business Reports. Carrefour's Exit from Singapore.