The French retail giant Carrefour has announced that it is exiting from the Indian market after being unable to make much inroads after entering the market in 2010. The company had five super stores in India. The company has been looking to sell its super stores for some time.
The multi brand retail in India had several restrictions on the entry of foreign players. Before 2012, such big foreign players were allowed to operate as whole sale stores only. In 2012, the sector has been opened up, allowing 51% FDI, but rules still stipulate that the decision with regard to having them still lies with the States. Another rule that these operators did not like is the rule to procure a percentage of merchandise locally.
Walmart, another retail major has recently announced roll back of its partnership with Bharti. UK based Tesco, in a contrast to these decisions has announced that it will expand its network in the country and increase the number of stores to 20, which are mainly operating in Maharashtra and Karnataka. Tesco is in partnership with Trent, Tata’s retail arm.
Carrefour is heard to be in talks with Bharti for a joint venture. Any confirmation by either of the parties is yet to come.