Monday, October 02, 2006

Carrefour to enter India under cash-and-carry format

Business Standard reports that French retail giant, Carrefour will be coming to India as a cash-and-carry retailer, investing an estimated $100 million in the venture. The first store will come up in the National Capital Region. This is the second international retailer than has followed this track of operations, with Germany’s Metro already operating in this format.

Carrefour operates on this format already and has 120 such outlets. The company also has a sourcing office in Gurgaon. According to sources, the company is keen to set up its supply chain in the country under this route, and once FDI regulations are changed, it will adapt the model to serve consumers directly.

While entering via a franchisee is simpler, the cash-and-carry method gives the retailer full control and a deeper understanding of the market and its prices. Carrefour has appointed Jones Lang LaSalle as its realty consultant and is already looking to locations.

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