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    Carrefour'S Profit Growth In China Is Facing Bottlenecks And Broken Arms To Support European Business

    2013/7/1 21:46:00 73

    CarrefourBrandFashion Brand

    The original meaning of P in French is "crossroads", which is the first French retailing giant in the world and second in the world. At present, Carrefour is really at the crossroads.

    < /p >


    "Carrefour is considering selling its business in mainland China and Taiwan. It may involve IPO in Hongkong or part of its assets with another company," P said.

    The report suggests Carrefour is seeking a plan to withdraw from the Chinese market.

    < /p >


    < p > despite Carrefour's "confidence in the Chinese market and its commitment to long-term investment and development in the Chinese market", it has not completely dispelled the doubts of the outside world.

    < /p >


    < p > reporter found that for the Shandong market, Carrefour had experienced a slow pace of expansion after its early rapid deployment.

    Up to now, Carrefour is located in Shandong only 4 branches in Ji'nan and Qingdao. Although Linyi and other places have signed agreements several years ago intending to enter, it has not yet been substantially landed.

    < /p >


    < p > < strong > profit growth in China has encountered bottlenecks < /strong > < /p >


    < p > once, Weifang had the opportunity to become Carrefour's third expansion station in Shandong. In July 2008, Carrefour vice president of China went to Weifang to conduct an inspection and site selection for Carrefour Weifang store.

    But the plan ended in nothing.

    < /p >


    In 2009, Carrefour was also intending to enter Linyi and signed P cooperation intentions.

    However, a person from Linyi merchants Bureau told reporters on the 26 day, "although Carrefour sent many teams to Linyi for inspection, later, for various reasons, the project did not land."

    < /p >


    Carrefour has also turned its attention to the already settled Ji'nan market without the success of P.

    According to the guide reporter, Carrefour was ready to open second stores in Ji'nan in 2011 and carry out multiple site selection.

    After leaving Ji'nan in the lotus supermarket, Carrefour also wanted to continue the operation.

    But so far, there are no new stores in Ji'nan or even Shandong.

    < /p >


    < p > but from all kinds of signs, Carrefour has not abandoned the potential market in Shandong.

    In June this year, the signing and launching ceremony of Tong Yue City Project in Yantai appeared.

    < /p >


    Last June, the representative of Carrefour China also appeared in the foundation laying ceremony of Tengzhou Zhong Wan International Plaza project. < p >

    The staff of the project told reporters on the 26 day, "we have signed a contract with Carrefour, and the project is under construction, and Carrefour will be settled after completion."

    < /p >


    < p > although Carrefour is still looking for a suitable shop opening opportunity, its slow pace of expansion in China is already a fact.

    Public information shows that Carrefour's number of stores in Huaxin dropped from 29 in 2011 to 18 in 2012.

    < /p >


    < p > "in Shandong, especially Ji'nan, the rate of expansion is relatively slow, mainly because there is no suitable store location."

    Ji'nan Carrefour responsible person has said so.

    However, in the eyes of the industry, the fierce market competition and low profit level also limit Carrefour's expansion.

    < /p >


    < p > the profit growth of Carrefour in China has been encountering bottlenecks due to the economic environment and other factors.

    According to media reports, the supermarkets that Carrefour opened before 2004 were all making money, and the stores opened between 2005 and 2008 basically broke even, and the stores opened after 2008 were basically at a loss.

    < /p >


    < p > < strong > "broken arm survival" support Europe Business < /strong > /p >


    < p > Carrefour 2012 earnings report shows that the group's sales revenue last year was 86 billion 558 million euros, up 1% from the same period last year, the lowest level since 2005.

    Reuters said, "it is reported that Carrefour has been withdrawing from the non strategic market to raise funds and reduce debt."

    < /p >


    From P to 2010, Carrefour has closed 6 stores in the Chinese market.

    Globally, the layout has also been shrinking in recent years.

    < /p >


    < p > in the view of analysts, Carrefour "broken arms to survive" is intended to obtain funds to support the European region where its business is concentrated.

    Reuters reports that Carrefour will need to finance 3 billion euros to revitalize its large supermarket sales in Europe.

    < /p >


    < p > in the second half of last year, the industry was widely rumored that Carrefour will sell its business in China, and the enterprises receiving the disc have also exposed COFCO and Huarun Wanjia.

    Carrefour is quoted as saying that the price of COFCO will be as high as 6 billion US dollars, while COFCO will only pay 3 billion dollars, and the price will not come to an end.

    < /p >

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