Carrefour to re-enter India via franchise partnership with Apparel Group

INDIA – Carrefour, the French retail giant, is set to return to India by June 2025 in a franchise partnership with Dubai-based retailer Apparel Group, marking its re-entry into the Indian market a decade after it exited in 2014.

Carrefour initially entered India in 2010 but withdrew after just four years, closing its five wholesale stores in Delhi, Jaipur, Agra, Meerut, and Bangalore.

At the time, Carrefour cited a lack of business opportunities and difficulties in finding a partner to expand its operations into multi-brand retail as reasons for its exit.

This new partnership between Carrefour and Apparel Group aims to bring Carrefour’s exclusive brands back to the Indian market, initially focusing on North India with plans for nationwide expansion.

According to both companies, the collaboration would strengthen their positions in India’s rapidly growing retail market. The first stores are expected to open in the National Capital Region (NCR) in 2025.

Nilesh Ved, Owner of Apparel Group and Chairman of AppCorp Holding, commented on the dynamic nature of the food retail sector in India, while Patrick Lasfargues, Carrefour’s Executive Director of International Partnerships, expressed excitement about launching in one of the world’s fastest-growing economies.

“This partnership is set to introduce Carrefour’s exclusive brands initially in North India with plans for a nationwide expansion. The first Carrefour locations are planned to open in NCR Region in 2025,” said a joint statement.

“In a very dynamic and rapidly changing market for food retail, we plan to open our first Carrefour stores during the summer of 2025. This partnership represents a significant step in strengthening our position in India.”

Lasfargues noted that India is now a cornerstone of Carrefour’s international expansion strategy, which aims to grow its presence in over 10 new countries by 2026.

Carrefour’s re-entry into India comes at a time when the country’s retail sector is undergoing significant changes and the company sees India as a key strategic market and a critical part of its global growth plans.

India’s population of over 1.4 billion, coupled with increasing urbanization and growing purchasing power, makes it a highly attractive market for international retailers.

The Indian retail market, however, poses challenges for foreign retailers. While the country opened its multi-brand retail sector to foreign firms in 2012, stringent pre-conditions such as local sourcing requirements and infrastructure investment have deterred many international companies from entering the market.

Additionally, the decision to allow foreign retailers to open stores is left to individual state governments, adding a layer of complexity.

Despite these challenges, Carrefour is optimistic about its return to India, with plans to expand in multiple formats across the country.

Apparel Group, which operates over 2,300 stores globally and has a significant presence in the Gulf region, as well as in markets such as India, South Africa, and Southeast Asia, is well-positioned to help Carrefour navigate the complexities of the Indian retail landscape.