Europe’s biggest retailer Carrefour SA has formed an agreement with Kishore Biyani’s Future Group.
It is learnt that Future Group will open Carrefour-branded franchise stores in the country under a deal signed three months ago. Plans are underway to set up between 150 and 300 Carrefour-branded hypermarkets in the next five years.
Future Group is currently scouting several Big Bazaar hypermarkets that could be converted into Carrefour stores. The first Carrefour store is likely to open at Mulund, in Mumbai; the space was acquired by Future Group in March from South Africa’s Shoprite Holdings Ltd.
Another possible site could be the upcoming Ambience Mall, in New Delhi’s Vasant Kunj neighbourhood.
The company, however, will continue to push both Big Bazaar and Carrefour brands because they cater to different sets of consumers. While Big Bazaar will operate as a mass-market format, Carrefour will cater to ‘upscale’ consumers in the country.
The deal will allow Future Group to source products and seek technical, technological and other expertise from Carrefour.
Future Group, which runs Pantaloon and the Big Bazaar chains, will pay the French retailer a royalty for using the brand.