Carrefour, Europe’s biggest retail chain, is about to close a deal with Kishore Biyani of Pantaloon Retail to set up franchise stores in India. The Paris-based retailer, which is seeing revenues in the native country falling due to tightening of spending by consumers, is expected to close the deal by March 2010. The Carrefour franchise stores will be aimed at affluent customers.
By establishing the deal Carrefour will follow the footsteps of Wal-Mart and the UK’s Tesco to enter the $390-billion Indian retail market.
The Carrefour franchise is likely to be a part of Future Value Retail, a 100 per cent unit of Pantaloon Retail, which owns hypermarket chains Big Bazaar and Food Bazaar. Carrefour has two entities in India—Carrefour WC & C India and Carrefour India Master Franchise Company.