Carrefour returns to India with 50-store
French retail giant Carrefour has re-entered the Indian market after a decade, opening its first store in Noida under a franchise with Dubai's Apparel
French supermarket chain Carrefour has opened its first store in India, marking its return after exiting the market in 2014. The retailer plans to open about 50 stores across the National Capital Region and Uttar Pradesh over the next three to four years.
This new venture is a franchise partnership with Dubai-based Apparel Group, a significant shift from Carrefour's previous strategy of investing its own equity. The first store, a 50,000-square-foot location in Noida carrying roughly 50,000 stock-keeping units, began a soft launch on 14 August.
Initial performance and rollout
Company executives stated that initial sales have been stronger than expected. Patrick Lasfargues, director of international partnerships for Carrefour, and Nilesh Ved of the Apparel Group noted the store's early performance was positive. The launch comes nearly two years after the franchise partnership was announced in September 2024, delayed from an original target of summer 2025.
The delay was attributed to building a local team and finding a suitable location. Ved explained the partners preferred to wait for the right conditions rather than rush the opening. The companies are targeting a clustered expansion approach, aiming to build 5-10 stores in a market before moving to another region, with western and southern India under evaluation for future growth.
A transformed retail landscape
The Indian retail market has changed dramatically since Carrefour's first attempt. A decade ago, organized retail and large supermarkets were seen as the next major growth channel. However, traditional kirana stores have retained their dominance. More recently, e-commerce and quick commerce have reshaped grocery shopping habits, especially in urban areas.
Carrefour acknowledges these shifts but believes physical stores still have a role. The company wants customers to first experience the store's assortment, which will include discounts and made-in-India products. The retailer has four global formats it could deploy: hypermarkets, supermarkets, gourmet stores, and express stores.
Future e-commerce and quick commerce plans
Quick commerce and e-commerce are part of the long-term strategy, but not from day one. Lasfargues said the partners will discuss an online strategy as the store network develops, with a preference for using existing stores as fulfilment points instead of immediately building dark stores. "We will first test the model," he said.
This consumer-facing approach is a major change from Carrefour's earlier cash-and-carry wholesale model, which it operated during its first stint in India. Lasfargues said the company considered re-entering wholesale but decided against it, as the model did not align with how most Indian kirana stores source their stock.
Competitive advantages and product focus
Executives cited Carrefour's global scale as a key advantage in a crowded market. The retailer operates about 15,000 stores across 40 countries with global revenues of approximately $16 billion. Private labels are expected to be an important part of the store's proposition, alongside non-food products.
Furthermore, the company aims to source Indian products developed for Carrefour that could eventually be sold in its international network. The partnership with Apparel Group, which operates about 85 international brands including Tommy Hilfiger and Calvin Klein, brings additional retail expertise to the venture.
