Carrefour entered the Indian market through a franchise partnership with Dubai-based Apparel Group. Its current strategy focuses on strengthening its offline store network, but the company is also evaluating acquisitions of existing retail networks, entry into quick commerce and opportunities to source fashion and footwear products from India.
Nilesh Ved, chairman of Apparel Group's parent company, AppCorp Holding, told BW Retail World that the company aims to open 50 stores in India over the next five years. He said Carrefour would prioritise markets where it could establish a sufficient number of stores to make operations more efficient.
Expansion in India With a Global Retail Brand
Carrefour is an international retail brand with an extensive global store network. The company intends to expand its Indian business by leveraging its international presence and experience in the retail sector.
According to Nilesh Ved, the objective is not simply to open individual stores in different cities but to establish a strong network in selected markets where the business can remain sustainable over the long term.
He said the company would consider supply chains, logistics and local market conditions while planning its expansion. Rather than entering too many geographical regions simultaneously, Carrefour is focusing on establishing an adequate number of stores in neighbouring areas.
“We need scale in states or in surrounding areas. We don't want to spread our business across too many regions and scatter our resources,” Ved said.
This approach could help the company improve product supply, inventory management and store operations.
Carrefour Searches for Locations in Delhi and Mumbai
After establishing its initial presence in the NCR, Carrefour is preparing to explore major markets such as Delhi and Mumbai. The company is searching for suitable locations in both cities, and discussions are also underway for space in some new malls.
However, Carrefour has not announced a specific date for opening stores in Delhi or Mumbai. Decisions will depend on the availability of suitable locations and the commercial viability of the proposed outlets.
Ved said the company was looking for locations in both markets. Some malls scheduled to open in the coming years could also form part of its expansion plans.
The company's ambitions extend beyond major metropolitan areas. According to Ved, Tier-2 and Tier-3 cities in India also offer promising opportunities for retail expansion, and Carrefour is assessing potential opportunities in these markets.
Before entering any city, however, the company will evaluate local competition, customer demand and the feasibility of establishing a store network.
Acquisitions Could Accelerate Store Network Expansion
Carrefour is also keeping the option of acquisitions open as it looks to expand in India. The company believes that acquiring an existing retail network could help it establish a presence in new markets more quickly.
Ved said Carrefour would consider potential acquisition opportunities and could increase its investment if required. Citing a hypothetical example, he said the company could consider purchasing a network with 80 stores if such an opportunity arose. This was an illustration of a possible scenario, not an announcement of a confirmed deal.
An acquisition could give Carrefour access to established stores, locations and operational networks, potentially accelerating its entry into new markets. However, the company has not identified any retailer or retail network that it is currently considering acquiring.
Ved said investment in expansion would continue and that the financial requirements could increase if a suitable acquisition opportunity emerged. Carrefour has not disclosed the total investment planned to achieve its five-year target of 50 stores in India.
Offline Stores Remain the Priority Before Quick Commerce
For now, Carrefour's primary focus is on strengthening its offline retail network. The company intends to explore the quick commerce business at a later stage, but it has not provided details about the launch timeline, delivery partners or operating model.
Carrefour will face competition from established organised retailers in India, including major retailer DMart, which focuses on pricing and the availability of everyday essentials.
To establish its position in this competitive market, Carrefour will need to focus on product variety, pricing, store locations and the shopping experience it offers customers.
Indian consumers are highly price-conscious and compare different options when making purchasing decisions. Adapting its international retail identity to local customer requirements will therefore be important as the company develops its business in India.
Carrefour Explores Sourcing Fashion and Footwear From India
Carrefour's Indian strategy is not limited to domestic retail sales. The company is also exploring opportunities to source fashion and footwear products from India and make them available in its international markets.
The initiative could broaden the company's relationships with Indian suppliers. However, Carrefour has not disclosed the scale of the proposed sourcing programme, the specific product categories it may cover or its procurement targets.
In the Indian market, the company is offering international brands alongside locally sourced products. Its Ghaziabad store includes categories such as groceries, household items, fresh fruits and vegetables, and bakery products. Carrefour is also exploring opportunities for its private-label products.
Patrick Lasfargues, executive director of Carrefour's international partnership business, said, “The opening of our second store in India is an important step in Carrefour's journey in this market. Following the launch of our first flagship store in Greater Noida, our expansion into Ghaziabad gives us the opportunity to bring our retail services to more customers across the NCR. We look forward to building on this journey and expanding our presence across India.”
Carrefour's progress will depend on how quickly it can achieve its target of 50 stores over the next five years and how effectively it can align its international retail identity with the needs of Indian consumers.
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