#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Carrefour to exit Thailand, Singapore and Malaysia

## Thaihome

Carrefour to exit Thailand, Singapore and Malaysia 
Tue, Jul 06, 2010
Reuters
Carrefour to exit Thailand, Singapore and Malaysia 

SINGAPORE - Carrefour has launched the sale of units in Malaysia, Singapore and Thailand, sources with direct knowledge of the matter told Reuters, in a deal that could raise around $1 billion for the French retailer.
Carrefour is working with investment banks Goldman Sachs and UBS on the auction, which is expected to generate interest from both corporate buyers and private equity firms, the sources said on Monday.

Carrefour, Goldman and UBS declined to comment.
The sources declined to be identified as the sale process was still not public. The auction is in its early stages, the sources said, and like any sale process could change at any time.
Carrefour, the world's second-biggest retailer, has exited Japan and Korea over the years to focus on bigger and fast-growing markets such as India.

The French group, like many other retailers in Europe and the United States, has been struggling due to challenging economic conditions.

The asset could be attractive for other global retailers that are expanding into Asia, the sources said.

Indonesia's Para Group, which has banking, media and retail interests, has said it aimed to raise more than $350 million from a global bond this year to buy a 40 percent stake in Carrefour's local unit.

Trans Corp, the media, entertainment, lifestyle and retail unit of Para Group, wants to increase its stake in PT Carrefour Indonesia from 40 percent to 100 percent.

----------


## Bettyboo

Let's hope the Thai stores continue in some way or another (as close to their current operations as possible); they're a decent store.

----------


## Mid

*Nothing Yet From Carrefour, Says Ismail Sabri*
July 06, 2010

*KUALA  LUMPUR*, July 6 (Bernama) -- The Ministry of Domestic Trade,  Cooperatives and Consumerism has yet to receive any explanation from the  management of Carrefour on a media report that the French hypermarket  chain is planning on shutting down its operations in Malaysia, Thailand  and Singapore.

 "I heard rumours too... But it will not be right to say that  investments in Malaysia are not attracting the interest of international  industrialists," its minister Datuk Seri Ismail Sabri Yaakob told  reporters at the Parliament lobby here Tuesday.

 He was commenting on a Reuters report yesterday that Carrefour had  started selling its units in Malaysia, Thailand and Singapore and  planned on stopping its operations in the three countries.

 The report which quoted sources, said the sales were being done through  investment banks Goldman Sachs and UBS.

 If there is truth to this claim, the move then by Carrefour has nothing  to do with the market environment in Malaysia, he said.

 "It has nothing to do with our market. Looking at the applications from  hypermarket companies wanting to open their branches in Malaysia, we  receive them everyday, and many we have not approved based on the  procedures that have been set," he said.

 bernama.com

----------


## BobR

Their price is higher than Tesco and Big C on most everything. I wish Walmart would buy them out and come to Thailand.  Walmart are not exactly the nicest people in the World, but they do know how to run a store.

----------


## Butterfly

they have better choice than Tesco, and they are the only ones to bring decent French food here

I guess growth is limited here because of the low margins, something many farang retailers will realize eventually

----------


## buriramboy

Typical French, run at the first sign of any trouble.

----------


## zygote1

So much for the myth that there were business opportunities galore for western retailers. Pity about Carrefour as I am able to  obtain proper  Scottish smoked salmon and not the  farmed dyed crap from a certain other country known for its whale killings.

I can't believe the Walmart comment. What exactly does Walmart bring to the table? Products that break  as soon as you get them home? Prices that are so low that the suppliers  cut corners on quality to meet the pricing demanded from Walmart? A history of employing illegal workers? Extremely poor working conditions? Stores that are filthy and filled with white trash? I was a big fan of Walmart  long ago, but then I came to realize that  Walmart  and quality  are not compatible. I flushed the toilet.


BTW check out  Funny Pictures at WalMart  the images  are addictive. trust me. It's a true freak show.

----------


## Mr Earl

> they're a decent store.


Yea I do a lot of my shopping at Carefour

The locations in Bangkok and Phuket probably do well. I can't imagine the store in Chumphon makes any money.

----------


## Gerbil

> I can't believe the Walmart comment. What exactly does Walmart bring to the table? Products that break as soon as you get them home? Prices that are so low that the suppliers cut corners on quality to meet the pricing demanded from Walmart? A history of employing illegal workers? Extremely poor working conditions? Stores that are filthy and filled with white trash? I was a big fan of Walmart long ago, but then I came to realize that Walmart and quality are not compatible. I flushed the toilet.


Sounds like they'd fit in perfectly here.  :Smile:

----------


## harrybarracuda

I'm sick of these places charging a fortune for imported stuff knowing expats are a relatively captive market. I was in a restaurant last night here in the sandpit and they wanted US$50+ for an average-sized steak entree because it was "Angus beef". F*** me I'd expect Matsuzaka for that. If I want to pay through the nose for steroids, I'll call Lance Armstrong.

Half the time they leave the original price on and if you do the maths you can actually see just how horrific is their mark up.
No sympathy whatsoever if people balk at their crap pricing policies and they can't sell enough to break even.

----------


## jojo333

There was talk of Carrefour opening in Hua Hin, guess it is not going to happen now.

----------


## Rural Surin

> Their price is higher than Tesco and Big C on most everything. I wish Walmart would buy them out and come to Thailand.  Walmart are not exactly the nicest people in the World, but they do know how to run a store.


It's not so much business knowhow, but the market atmosphere. If you don't have the population of mindless consumers, chances are you won't do well anywhere.

----------


## donmeurett

> Let's hope the Thai stores continue in some way or another (as close to their current operations as possible); they're a decent store.


Most of their prices are above other similar stores.

----------


## Butterfly

there has been some signs that they over expanded in Asia, I guess they will focus primarily in China, not knowing that the growth there is one big bubble ready to explode and that will take a lot of "foreign" companies with them

----------


## Tom Sawyer

> I can't believe the Walmart comment. What exactly does Walmart bring to the table? ...  Prices that are so low that the suppliers cut corners on quality to meet the pricing demanded from Walmart?


The ugliest of the ugly faces of globalization. A race to the bottom. Or as one guy said, what's the point of cheaper running shoes if I can't afford them anyway because I lost my own job - making running shoes?

----------


## teddy

Published:  6/07/2010 at 08:38 PMOnline news: BreakingnewsCarrefour SA, the world's second-biggest  retailer, plans to exit Thailand, Singapore and Malaysia and is seeking  offers for its operations in the three countries, say four people  familiar with the matter.


 The French company has approached potential buyers and may seek bids  by early September, said two sources, who declined to be identified. The  combined operations may fetch between US$800 million and $1 billion,  they said.


 Carrefour is working with the investment banks Goldman Sachs and UBS  on an auction, which is expected to attract both corporate buyers and  private equity firms, other sources said.


 Carrefour has exited Japan and Korea in recent years to focus on  bigger and fast-growing markets such as India. CEO Lars Olofsson told  shareholders in May that the company needed to consider leaving markets  where it could not be the leading player.


 Carrefour's Thai business may have a value of $500-600 million, while  the Malaysian and Singapore operations may be valued at $350-400  million, they said. Carrefour plans to retain its units in China and  Indonesia, they said.


 Carrefour first opened in Thailand in 1996 and now has 38 locations  but recently it has been shifting its focus to smaller formats including  supermarkets.


 The sources said bids could come from Tesco, the UK's largest  supermarket chain and the hypermarket leader in Thailand, Japan's Aeon  Co, Hong Kong's Dairy Farm International Holdings Ltd and Thailand's Big  C Supercenter Plc.


http://www.bangkokpost.com/breakingn...-thailand-exit

----------


## wefearourdespot

damned...I have better hoard their commercial branded camembert at 135 baht the 200grams box before they pack ...

----------


## wefearourdespot

also can't imagine how much Delices de France will increase its prices once its only competitor packs away ... can only hope some Lao or Khmer guy comes here in Pattaya and opens a bakery.

----------


## Begbie

Bad news, Carrefour is the best of the big supermnarkets in Chiangmai.

----------


## Humbert

Carrefour was decent competition for Tesco and Big C. Their locations in Thailand will most likely be bought by one or a combination of those two. It is unlikely that another operator, like WalMart, would buy their whole operation. WalMart could never survive in Thailand without a significant number of branches. Carrefour, Tesco and Big C are all strong in groceries, WalMart is not.
I will miss their bread although I have found the quality and freshness to be uneven at their various locations.

----------


## Jet Gorgon

> Carrefour to exit Thailand, Singapore and Malaysia 
> 
> The French group, like many other retailers in Europe and the United States, has been struggling due to challenging economic conditions.


Nah. They're struggling because they are French.  :Smile:

----------


## dotcom

LOL. Reminds me of KMART's disasterous foray into Singapore. I guess they wanted to set up a US type operation, massive car park where land costs a million dollars a square inch.

I don't think they lasted 6 months. Horses for courses.
I remember when TESCO came in here to give LOTUS a much needed kick in the ass. That Seacon SQ store is a monster, especially at the weekend.

LOTUS were morons.

----------


## PaulBunyon

Carrefour has been going down the tubes for years. This may only be the beginning. I bet Makro and Lotus will oneday do the same. Makro has been crap forever too. Lotus has been falling apart lately. It's hard to figure out what's going on with them.

----------


## HermantheGerman

> BTW check out  Funny Pictures at WalMart  the images  are addictive. trust me. It's a true freak show.


Why freak show ? This is U.S.A live/real. Trust me.

----------


## baldrick

> Nah. They're struggling because they are French.


are you saying that americans would just roll over and give up with out a struggle ?  :Very Happy:

----------


## Gayhole

Sad part is that a lot of direct jobs will dissapear, together with the knock on to the loss of supply chain jobs to.
And it isn't finished there either , might wake a few guys up however.

----------


## Jesus Jones

> Originally Posted by Bettyboo
> 
> 
> Let's hope the Thai stores continue in some way or another (as close to their current operations as possible); they're a decent store.
> 
> 
> Most of their prices are above other similar stores.


True, and their cereal prices are even higher than Tops, Gourmet and Villa markets.

----------


## sabang

Small shopholders might complain, but Tesco, Big C, Carrefour & Makro have improved the grocery shopping in Thailand, as has 711 in a different way.

But in Thailand, Carrefour is the weakling of the big four. Sure, it has some lines that several people appreciate because of it's Gallic origins but it can't overall compete with the others on price. Basically, it is getting out while it's behind.

I'd quite like to see a Japanese company buy them out actually.

----------


## 12Call

Villa and Foodland provide all at fair prices here in Bangers.

----------


## aging one

> I remember when TESCO came in here to give LOTUS a much needed kick in the ass. That Seacon SQ store is a monster, especially at the weekend.  LOTUS were morons.


Tesco and Lotus have been partners since the first store opened. There was no Lotus store that was stand alone before.

----------


## filch

> Lotus has been falling apart lately. It's hard to figure out what's going on with them.


Perhaps because Tesco management gave back control to local Lotus management several years ago after they helped set them up and point them in the right direction.

----------


## sabang

> Villa and Foodland provide all at fair prices here in Bangers.


I like Foodland, certainly it was my favourite in Pattaya. Villa- I've only been to the one in Suk Soi 7 and I thought it was expensive. Great place to buy wine & cheese though.

But even here in rural Ubon I've got Tesco, Big C & Makro in easy reach. And HomePro, Index and so on. Carnt complain.

----------


## Thaihome

> Originally Posted by dotcom
> 
> I remember when TESCO came in here to give LOTUS a much needed kick in the ass. That Seacon SQ store is a monster, especially at the weekend. LOTUS were morons.
> 
> 
> Tesco and Lotus have been partners since the first store opened. There was no Lotus store that was stand alone before.


 
CP Group had 14 Lotus SuperCenters at the time the JV with Tesco was formed in 1998.  CP has since sold out and Tesco Group owns Ek-Chai Distribution System Co., Ltd the local operating company.  The CEO and CFO are Tesco executives.
TH

----------


## aging one

Villa is for the thinks you crave. Other than that it is ridiculously overpriced.

----------


## English Noodles

> Perhaps because Tesco management gave back control to local Lotus management several years ago after they helped set them up and point them in the right direction.


I thought that the 'Lotus' part of the company was a subsidiary of Charoen Pokphand Foods (CP Company) and that they sold their shares in Tesco Lotus (Thailand) in 2003, and that they were only now represented in name. :Confused:

----------


## phomsanuk

A little taste of France leaves the Kingdom, I'll miss them but Wal Mart is one hell of a downgrade for gourmets. :France:

----------


## Perota

> Villa and Foodland provide all at fair prices here in Bangers.


Villa, agree, but Foodland ???? Last time I went there, I bought just a pot of mustard because I didn't want to have completely wasted my time going there.

Near where I stay in Bangkok, the food mart in the basement of The Mall Ngam Wong Wan is definitively the best option.

----------


## Jesus Jones

I noticed carrefour staff doing a silly dance at 12pm similar to that of M&K.  They all looked delighted!  What's the point to this?

----------


## nikster

> damned...I have better hoard their commercial branded camembert at 135 baht the 200grams box before they pack ...


What they've decently priced cheese? Damn I didn't even know that... 

Never liked Carrefour much, seems like a Tesco clone - both pretty uninteresting. Heavily processed foods and other items from the three mega-conglomerates Unilever, Nestle and P&G (unless some of them merged by now, didn't keep up to date). The prices are usually not as low as you might think either, e.g. the local supermarket is often cheaper.

----------


## Yemen

Would hate to see Wallmart come to Thailand. If they did Thais would find out what bad working conditions are.

----------


## panama hat

> I'm sick of these places charging a fortune for imported stuff knowing expats are a relatively captive market.


You overvalue yourself and the expat market . . . 

It is quite simple:  Don't buy it if you think it is overpriced

----------


## aging one

> Near where I stay in Bangkok, the food mart in the basement of The Mall Ngam Wong Wan is definitively the best option.


that would be tops fresh mart.

----------


## Humbert

> Originally Posted by harrybarracuda
> 
> I'm sick of these places charging a fortune for imported stuff knowing expats are a relatively captive market.
> 
> 
> You overvalue yourself and the expat market . . . 
> 
> It is quite simple: Don't buy it if you think it is overpriced


Common sense as usual, PH.

----------


## chassamui

> they have better choice than Tesco, and they are the only ones to bring decent French food here
> 
> I guess growth is limited here because of the low margins, something many farang retailers will realize eventually


the only ones to bring decent French food here
if you must eat shite you must pay a pemium for it. :Smile:

----------


## Humbert

I think they were stupid to announce the fact they are leaving in the press. They should have hired someone like Goldman-Sachs to look for a buyer.
Now customers will be reluctant to buy big ticket electronics from them for fear of having difficulties with returns.

----------


## dotcom

> Originally Posted by dotcom
> 
> I remember when TESCO came in here to give LOTUS a much needed kick in the ass. That Seacon SQ store is a monster, especially at the weekend. LOTUS were morons.
> 
> 
> Tesco and Lotus have been partners since the first store opened. There was no Lotus store that was stand alone before.


OOPS.

OWNED.

----------


## dotcom

> Their price is higher than Tesco and Big C on most everything.


That is utter bullshit.

----------


## dotcom

> Originally Posted by Perota
> 
> Near where I stay in Bangkok, the food mart in the basement of The Mall Ngam Wong Wan is definitively the best option.
> 
> 
> that would be tops fresh mart.


OOPS. Missed that one too.

TOPS outsourced their food ops to Royal Ahold about 15 years ago.

Central Robinson's biggest competitor is the Mall Group.

You might be right but I woud like proof.

btw The MALL Bangkapi has one of the nicest grocery stores around.
An older mall that has been very well looked after.

Same as Emporium & Paragon.

I find TOPS to be a very nice compromise.

Like their meat. Like their fruit. Buy neither at Tesco or Carrefour.

----------


## panama hat

> Common sense as usual, PH.


Thank you, but you outdo me with this:




> I think they were stupid to announce the fact they are leaving in the press. They should have hired someone like Goldman-Sachs to look for a buyer. Now customers will be reluctant to buy big ticket electronics from them for fear of having difficulties with returns.


Odd how big multinationals are carp at PR, though I do believe this informatio was leaked?  I could be wrong, of course

----------


## English Noodles

> Odd how big multinationals are carp at PR


The minnow's win hands-down.




> though I do believe this informatio was leaked?


Now stop trying to be clever and using your Italian skills. :Smile:

----------


## Thaihome

> I think they were stupid to announce the fact they are leaving in the press. They should have hired someone like Goldman-Sachs to look for a buyer.
> Now customers will be reluctant to buy big ticket electronics from them for fear of having difficulties with returns.


From the OP:
_Carrefour is working with investment banks Goldman Sachs and UBS on the auction, which is expected to generate interest from both corporate buyers and private equity firms, the sources said on Monday.

Carrefour, Goldman and UBS declined to comment...._


TH

----------


## Mid

* Thai group eyes Carrefour* 
Jul 7, 2010  
 
_Carrefour has launched the sale of units  in Malaysia, Singapore and Thailand, sources with direct knowledge of  the matter told Reuters on Monday, in a deal that could raise around  US$1 billion (S$1.4 billion) for the retailer._
PHOTO: REUTERS

*BANGKOK* - SHARES in Thai conglomerate Berli Jucker  surged nearly 30 per cent at one point on Wednesday on speculation the  company might offer to buy the Thai business of French retailer  Carrefour. 

Carrefour has launched the sale of units in Malaysia,  Singapore and Thailand, sources with direct knowledge of the matter told  Reuters on Monday, in a deal that could raise around US$1 billion  (S$1.4 billion) for the retailer. 

Analysts said potential buyers for the Thai stores could be  British-owned Tesco Lotus, Big C Supercenter, Thailand's second-biggest  hypermarket operator, and Berli Jucker. Finansia Syrus Securities said  in a note it saw Berli Jucker as frontrunner as it had ample cash. 

The Bangkok Post daily reported the French firm had  approached potential buyers and might seek bids by early September. It  said Carrefour operated at 38 locations in Thailand and the Thai  business might have a value of US$500-600 million. 

Bloomberg news reported that the retailer will consider  selling the units separately as potential buyers may not be interested  in bidding for all three combined, according to two of the people.  Carrefour's Thai business may have a value of US$500 million to US$600  million, while the Malaysian and Singapore operations may be valued at  US$350 million to US$400 million, the people said. 

Carrefour plans to retain its units in China and Indonesia,  they said. -- REUTERS

straitstimes.com

----------


## Humbert

These kinds of things can have a disastrous effect on sales. Hopefully they will parcel off their various branches and logistics facilities. Their inventories will need to be liquidated at some point which will mean great bargains.

----------


## Perota

> [
> 
> 
> 
> 
> 
> 
>  Originally Posted by Humbert
> 
> ...


Nobody cares about what people think in Asia. Carrefour has new shareholders who want short term return on their investment, fire sale is the way to go. Not everybody is happy with that, but this is capitalism at its best !

----------


## aging one

or worst when you look at the lost jobs.

----------


## BobR

> Originally Posted by zygote1
> 
> I can't believe the Walmart comment. What exactly does Walmart bring to the table? Products that break as soon as you get them home? Prices that are so low that the suppliers cut corners on quality to meet the pricing demanded from Walmart? A history of employing illegal workers? Extremely poor working conditions? Stores that are filthy and filled with white trash? I was a big fan of Walmart long ago, but then I came to realize that Walmart and quality are not compatible. I flushed the toilet.
> 
> 
> Sounds like they'd fit in perfectly here.


I have NEVER had any problems returning a defective product to Walmart.  Not even once. Almost no questions asked.  Yes, they treat their employees like garbage, (I even mentioned in my posting that they were not nice people) but they do run a good store.

----------


## BobR

> Originally Posted by BobR
> 
> 
> Their price is higher than Tesco and Big C on most everything.
> 
> 
> That is utter bullshit.


You are welcomed to disagree with me, but using the language you did is without justification or purpose.

----------


## Tom Sawyer

More Carefour and fewer Big C would have suited me. Have to stock up on the Duracell batteries too I guess. 

On the plus side, Waitrose has been importing foods to the Tops Marketplace (the higher end of the Tops' chain) but most of it seems frozen and is too expensive (e.g. not worth it). It always looks like it hasn't been shipped/stored properly - like it's thawed and re-frozen. No thanks.

Seems Waitrose and their sister UK Dept store John Lewis have been doing some deal with Central for a few years now. The stores are set out in a similar fashion (Central Dept like John Lewis) right down to the same type of font used on the interior walls.

----------


## helge

> Originally Posted by Humbert
> 
> Common sense as usual, PH.
> 
> 
> Thank you, but you outdo me with this:
> 
> 
> 
> ...


Do Carrefour read TD:
Channel NewsAsia - Carrefour says not closing any stores in Singapore, Malaysia - channelnewsasia.com

----------


## noelbino

In Pinklao we have a choice of Tesco or Tops.
I do my daily shopping at my local Tesco Talart.
Enery Saturday it's off to Tops market Place. Here they have a huge range of imported food at what I deem to be ridicuously high prices. 
They have recently bought in some German frozen food.
 eg Weiner Scheitzel at 2 small servings at 520 Baht.
having been here for so long I fathom the cost difference between Thailand and Oz, but paying 260 Baht for 1 seems to be over the top.

----------


## Mid

*Carrefour opts out on unique reason: Korn*
Wichit Chaitrong
*
Finance Minister Korn Chatikavanij mentioned today that the decision of  Carrefour, the world's second largest retailer, to leave Thailand does  not signal low confidence among foreign investors. * 

                               He noted that the Thai domestic market  is large with over 60 million population. 

Even Tesco Lotus is so  successful that small retailers are complaining, he noted. 

 Carrefour  made the plan to exit Thailand, Singapore and Malaysia. 

Central Retail  Corp expresses interest in taking over its business in Thailand. 

 Korn  also told reporters today that he would seek a discussion with the  Labour Minister on the minimum wage adjustment for the long term. 

An  informed source at the Finance Ministry said that Korn has assigned a  study on the minimum wage hike.

nationmultimedia.com

----------


## Mid

*Carrefour denies store closures in Malaysia, Singapore*
วันพฤหัสบดี ที่ 08 ก.ค. 2553 

  French supermarket giant Carrefour denies that its stores in  Malaysia and Singapore will close following reports that it will shut  down its Southeast Asian outlets

mcot.net

_unique reason: Korn_

hmmmm......................

----------


## Tom Sawyer

So maybe Central Group is using its Amart connections to chase away the competition? Hmm. Let's see if Tesco stays the course. If that happened - only one retail group would control 90% of the big box supermarkets. Central.

(Big C and Tops are owned by the Central Group family - one of the oldest and most established chinese merchant familes - and were the target (apparently) of the Reds' arson attacks)

----------


## panama hat

> Do Carrefour read TD:
> Channel NewsAsia - Carrefour says not closing any stores in Singapore, Malaysia - channelnewsasia.com


Local news here also disputes claims that Carrefour is closing in Malaysia . . .

If this is a well-thought-out negative publicity campaign by some competitors . . . I wonder how Carrefour sales were affected

----------


## Begbie

Panic buying...I was in Carrefour twice yesterday.

----------


## Lambik

"Carrefour  belie any closure of stores in Malaysia and Singapore, noting that the  activity is normal for all stores.
In 2010, four  Carrefour hypermarkets were opened in Malaysia and four more scheduled  to open by the end of the year.
Asked  by AFP about Thailand, Carrefour declined to make comment."

-Le Parisien-

----------


## Mr R Sole

If everyone os rushing in to Carrefour then Carrefour must be loving this publicity if it isn't true...

----------


## sabang

H'mm, I think someone deliberately leaked this. I doubt Carrefour is amused.

----------


## Tom Sawyer

Any word on how soon they would close/cease (Thailand Ops)? Otherwise, stocking up on goods that will expire is kind of pointless if they're still open six months from now..

----------


## Tom Sawyer

If this goes ahead, Central Group and CP will have cornered the grocery market with only Tesco as the remaining competitor.

----------


## Butterfly

> The Bangkok Post daily reported the French firm had approached potential buyers and might seek bids by early September. It said Carrefour operated at 38 locations in Thailand and the Thai business might have a value of US$500-600 million.


that doesn't sound like much,

----------


## BobR

There are too many people working for these big corporations with MBA's but not a bit of common sense to go with it.

----------


## Thaiedward

Are not Tesco and Walmart in collusion? Or am I yet again a victim of disinformation?

----------


## donald36

Excellent shop --their bread and cakes are the best

----------


## Humbert

> If this goes ahead, Central Group and CP will have cornered the grocery market with only Tesco as the remaining competitor.


Why CP? 7-11 is a convenience store not a full line grocery store. 
Tesco Lotus, Tops and Big C which are Central Group operations, The Mall which operates groceries in several locations, Makro, Foodland and Villa are still in the game.

----------


## Tom Sawyer

> Are not Tesco and Walmart in collusion? Or am I yet again a victim of disinformation?


You're a victim again.

It's Wallmart and ASDA that are joined at the hip. Tesco and Wallmart are arch-foes. ASDA is/was a British supermarket chain that was scraping the bottom with the Iceland chain (maybe it still is a bottom-feader even post-Wallmart ..not sure)

http://industry.bnet.com/retail/10009350/walmart-vs-tesco-recovery-conditions-favor-the-british-retailer-much-as-they-do-target/

----------


## Seekingasylum

> they have better choice than Tesco, and they are the only ones to bring decent French food here


What utter nonsense. They sell practically the same lines as Tesco Lotus and BigC both of whom offer a better service and in the case of fresh produce a far better quality. As far as I was aware the only " French " products worth going out of one's way for actually sold by Kowfoo were the economical wines and the baguettes, hardly an extensive repertoire denoting a national cuisine. 

Kowfoo is as French as Tesco Lotus is British.

Get a grip you silly Belgian.

----------


## Butterfly

> As far as I was aware the only " French " products worth going out of one's way for actually sold by Kowfoo were the economical wines and the baguettes, hardly an extensive repertoire denoting a national cuisine.


as usual talking out of your ass, if you had looked carefully in some of the shelf section, some products were exclusively French that you couldn't find anywhere else in Thailand.

What a tard you make,

----------


## taxexile

> Tesco Lotus and BigC both of whom offer a better service and in the case of fresh produce a far better quality.


tesco lotus are a disorganised and poorly stocked joke.

at least in hua hin. 

maybe some of the bangkok stores are better, the rama 4 tesco bears little resemblance to its "runt of the litter" brother in hua hin.

product lines are always changing, with more and more branded goods being replaced by  tesco copy products, the pricing is inconsistent and the quality of the fruit and vegetables there is dismal. staff attitude could be improved too.

carrefour (in bangkok) is a much better store with a wider variety of foods available,  as a brit i have an natural aversion to buying french sourced products, but apart from the overpriced cheeses and synthetic yoghurts i have not noticed much in the way of  french foods there.

----------


## Mid

*Tesco eyes Carrefour*
13/07/2010

 Tesco Plc investors want the UK's largest  retailer to bid for Carrefour's Southeast Asian supermarket assets. Just  not at the indicated price.

 Carrefour is seeking offers for its units in Malaysia, Thailand and  Singapore and Tesco is among the possible buyers, people familiar with  the matter said last week. The combined operations could fetch $800  million to $1 billion, a valuation that would be too high for any  bidder, said RBS analyst Justin Scarborough.

 "If Tesco keeps putting money into their strong markets, and Thailand  is clearly one, then that would be grand,'' said Phil Doel, an  investment manager at F&C Asset Management in London, whose funds  hold about one percent of Tesco shares.

 "It depends on price and the return they can get.''

 Tesco generates about one-third of its sales outside the UK, where  growth is slowing amid heightened competition and easing inflation. Asia  accounts for about 15% of the retailer's revenue and is its  fastest-growing division by earnings, which rose by 24% last year. Tesco  plans to add 460,000 square metres of new store space in the region  this year.

bangkokpost.com

----------


## Mr Earl

It will be a sad day for Carefour to go away.
Many of their name branded products are quite good and reasonably priced.
I doubt Tesco will be carrying Camembert and they certainly couldn't bake a proper baguette to save their lives.

----------


## peterpan

In Udon carryfoo do absolute shite job, same products as lotus next door to to them, crap vegetables and their bakery is worse than Lotus, they deserve to fold.

----------


## Humbert

Yes, Carrefour is much better in locations with large farang populations. The one in Pattaya is fantastic. The best one in Bangkok is on Rama 4. The Ratchadapisek and Ladprao branches are not bad. This inventory focusing is also true of Lotus and Big C.

----------


## Butterfly

The one in Pattaya is probably the best in Thailand with the one in Rama 4

----------


## taxexile

i dont think it has got much to do with the stores serving large farang populations, but more to do with who is in competition next door.

tesco and carrefour are neighbours on rama 4 and both need to put some effort into their operations, raise their standards of both stock and customer care above the usual thai norm getting away with the least possible effort.

a store with no immediate competion becomes lazy, like tesco in hua hin. its a bit of a dump really. poorly stocked and overpriced with checkout girls who are well trained in pouting but poorly trained in engaging with customers.

----------


## wefearourdespot

> I doubt Tesco will be carrying Camembert and they certainly couldn't bake a *proper baguette* to save their lives.


well the baguette sold by Carrefour can hardly be called proper either , to get one you have to cross the border to Laos or Cambo (I wonder is it so difficult to get a Thai visa for a Lao/Khmer baker ?)

----------


## Tom Sawyer

> a store with no immediate competion becomes lazy, like tesco in hua hin. its a bit of a dump really. poorly stocked and overpriced with checkout girls who are well trained in pouting but poorly trained in engaging with customers.


Come on taxexile - you have the hump today? What do you want them to do? Smiley cheery eyed? It's a robotic job they have. 

At least we get a chance to have an oggle while they 'bag'! Many of the girls in Bangkok are quite alright - don't know about Hua Hin..

----------


## Humbert

> dont think it has got much to do with the stores serving large farang populations, but more to do with who is in competition next door.


It is always about the customer profile. Every retailer tweaks their assortments by a range of factors. They also take into account the strengths and weaknesses of their competition.

----------


## Mid

*Berli Jucker keen to bid for Carrefour*
21/07/2010

 Berli Jucker Plc is looking to bid for  Carrefour's Thailand operations to help support its consumer products  supply chain, according to BJC president Aswin Techajareonvikul.

 BJC, 70% owned by Charoen Sirivadhanabhakdi's TCC Holding, has  expanded rapidly in recent years through mergers and acquisitions. 

The  company operates five core businesses: industrial supply chain, consumer  goods, healthcare, technical services and international businesses.

 "We are considering the [Carrefour] bid. It would certainly fit in  with one of our current businesses, the consumer supply chain. Retailing  is part of that supply chain,'' said Mr Aswin.

 "Right now, we have a presence in the upstream side, such as potato  farms for our potato chips or cold storage facilities. But what we lack  is downstream, namely a distribution channel to consumers.''

 BJC, one of the country's oldest firms at 128 years, produces and  distributes thousands of products, including Tasto chips, Cellox facial  tissues and Dozo and Campus snacks.

bangkokpost.com

----------


## Humbert

> The company operates five core businesses: industrial supply chain, consumer goods, healthcare, technical services and international businesses.


Without knowledge and experience in the retail industry they would be doomed to failure. Let's hope a retailer picks up Carrefours operations.

----------


## Tom Sawyer

Why would a food producing company the size of BJC "one of the oldest firms - 128 years" be doomed to failure in their own country (a country which works on inter-chinese-business-family connections)? I tell you who is doomed to failure - it's the foreign companies that come in here without a strong Thai-Chin partner.

----------


## peterpan

^ because a manufacturing co, seeking to secure a position further up the supply chain rarely works, it doesn't really pay to turn your customers into competitors.

----------


## Humbert

> Why would a food producing company the size of BJC "one of the oldest firms - 128 years" be doomed to failure in their own country (a country which works on inter-chinese-business-family connections)? I tell you who is doomed to failure - it's the foreign companies that come in here without a strong Thai-Chin partner.


Because they know nothing about retailing. It has never worked. Remember Campeau?

----------


## king of uranus

God help the land of smiles if WalMart comes. It will be the end of the small to medium size Thai run stores.

----------


## Nostradamus

> like tesco in hua hin. its a bit of a dump really. poorly stocked and overpriced with checkout girls who are well trained in pouting but poorly trained in engaging with customers.


The only exception to that in Bangkok is Foodland.

----------


## Mid

*PTT looks to buy Carrefour*
20/08/2010

 PTT Plc, the countrys largest oil conglomerate,  is looking into the possibility of buying out Carrefour (Thailand) to  further expand its retail operations, reports said, citing an informed  source at the PTT.

 The reports said PTT CEO and president Prasert Bunsumpun had ordered  such a study after several companies had approached PTT about a joint  buyout of the giant foreign retailer's Thailand subsidiary.

 PTT will study the possibility of buying the retail firm itself, or  joining with business partners in a takeover, according to the source.

 However, PTT has no plan to join forces with 7-Eleven, which is its  business partner in operating retail outlets at PTT fuel pumps. PTT  wants to strengthen and expand its retail business by itself.

 The source said the takeover of Jiffy had not really helped  strengthen PTTs retail operation as expected.

 PTT thinks the retail business is not just selling fuel. The  business of retail shops at fuel outlets is also important.

 "However, oil and gas will continue to be the core business of PTT,  the source was quoted as saying.

bangkokpost.com

----------


## Humbert

^ I hope it doesn't happen. PTT is rife with bueaucracy and cronyism. Retailers need to be nimble and react quickly to conditions and opportunites.

----------


## FarangRed

I've heard Netto is taking over

You can shop all day
You can shop all night
All you get is a bag of shite

----------


## Mid

*                 Thai PTT bids for Carrefour Thai assets            * 
Luisa  Cheshire
08 September 2010

                                           Thai energy firm PTT has put in a bid to buy the Thai  operations of French retailer Carrefour SA             

                           Thai energy firm Thai PTT today put in a bid to buy the Thai operations  of French retailer Carrefour SA, which analysts expect to fetch US$600m,  reports Reuters. 

  PTT is participating through its retail subsidiary, PTT Retail Marketing  Co Ltd, which runs Jiffy convenience stores at its gas stations. 

  "We have already submitted a bid for the first round. We are waiting for  the next round," PTT chief executive Prasert Bunsumpun told reporters. 

  The move is part of a plan to expand PTT's retail business, Mr Prasert  said. 

   "If we got Carrefour's assets, it would make our retail business bigger and our bargaining power will rise," he said. 

  PTT could seek partners to join forces in the retail business if the  Carrefour bid succeeded, Mr Prasert added.  

  Thai PTT joins an increasingly crowded race: at least four retailers  from Europe and Asia have put in first-round bids.  

  Carrefour, the world's second largest retailer, wants to sell its stores  in Malaysia, Singapore and Thailand at a potential price of US$1bn to  focus on growing markets such as India and China.

fruitnet.com

----------


## The Gentleman Scamp

> The French group, like many other retailers in Europe and the United States, has been struggling due to challenging economic conditions.


Ah diddums, poor Carrefour.

*FUCK OFF AND GOOD RIDDANCE.*

----------


## Tom Sawyer

> ^ I hope it doesn't happen. PTT is rife with bueaucracy and cronyism. Retailers need to be nimble and react quickly to conditions and opportunites.


Just like their petrol stations, they'll probably refuse credit cards. What a waste of retail space if some rat infested boondoggle like PTT goes retail.. Floor to ceiling with what - motor oil? Or some inferior frozen foods and other junk? Thailand's "Iceland".

----------


## Humbert

> Just like their petrol stations, they'll probably refuse credit cards. What a waste of retail space if some rat infested boondoggle like PTT goes retail.. Floor to ceiling with what - motor oil? Or some inferior frozen foods and other junk? Thailand's "Iceland".


Takes them months to decide upon a font. Can't wait to see how they ruin a retail franchise with their dithering.

----------


## Thaihome

*Carrefour bidders shortlisted to four*

Published: 20/09/2010 at 12:00 AMNewspaper section: Business
The second round of bidding for the assets of Carrefour in Thailand will become more intense as three giant Thai corporations eye the prize: the cash-rich oil giant PTT; Central Group, the country's largest retail chain; and the trading group Berli Jucker (BJC), majority-owned by liquor billionaire Charoen Sirivadhanabhakdi.

Mr Charoen may find it very difficult to return from France empty-handed after BJC reportedly offered the highest bid in the first round. He is expected to bid even higher in the second round.
Acquiring the Thai assets of the French hypermarket chain, estimated to be worth 16-19 billion baht, will fulfill Mr Charoen's mission to create a diversified conglomerate.
Currently, his empire includes beer (Thai Beverage), spirits, hospitality, property (TCC Capital Land), trading (BJC), retailing, and Japanese-style food and beverage (Oishi Group).
BJC distributes food, consumer goods, industrial materials, pharmaceuticals, packaging and technology. Consumer goods brands include Parrot soap, Cellox tissue paper and Dusty potato chips.
Acquiring the Carrefour assets would give BJC a stronger distribution network across the country with 43 prime locations, but Mr Charoen is also interested in the 10-plus construction licences for pending developments in the future.
"We want BJC to have complete downstream and upstream trading. We plan to buy Carrefour's assets through BJC alone or by joining with partners to increase our strength" said Thapana Sirivadhanabhakdi, a son of Mr Charoen and a director of BJC.
The fourth contender for Carrefour's Thai network is the French retailer Casino Group. There have been conflicting reports about whether UK-based Tesco is still in the hunt.
BJC generated revenue last year of 23.13 billion baht, about seven times lower than PTT, which earned 1.62 trillion baht. Mr Charoen's personal wealth is about 129 billion baht. The main weak point of BJC is a lack of experience in hypermarket management.
Central Group is serious about returning to the hypermarket sector after pioneering it before the 1997 financial crisis. Central once held 40% in CenCar Co, the current operator of Carrefour in Thailand. It sold the shares in CenCar after the crisis to focus on its core department store business.
At that time, Central Retail Corporation also wholly owned Big C Supercenter and sold some shares to Casino. The latter has since raised its ownership to 68% while CRC holds 20%.
"The CEO management board of Central has agreed to buy Carrefour," said an industry source.
Prior to this, Tos Chirathivat, the CEO of CRC, said it had almost 20 billion baht available to expand the businesses via mergers and acquisitions.
The key strength of CRC is its 60-year retail history. It also has gained expertise from its international partners such as Ahold, the Netherlands-based retail giant and owner of Tops supermarkets.
Prasert Bunsumpun, president and CEO of PTT, tried to negotiate to open PTT petrol stations at Big C stores in the past, but got no response.
A local securities analyst said PTT was very serious about its offer because it wants to diversify to the retail sector to get a new customer base.
PTT previously bought Jet fuel stations from US-based Conoco Philips, including the Jiffy mini-marts inside the stations.

----------


## Nostradamus

Meh.

It will still be a crap supermarket with slow service whomever ends up with it.

Foodland still way out in front.

----------


## Humbert

> Foodland still way out in front.


Except they have a crap bakery. Its funny they haven't figured that out in all these years of competition eating their shorts.

----------


## Mid

*Thailands PTT Withdraws Carrefour Offer*
September 22, 2010



*PTT*, the Thai energy company, said Wednesday that it  had withdrawn its bid for the local assets of Carrefour,  as the French retail chain tries to get out of its Southeast Asian  units, thought to be worth $1 billion.

 A spokeswoman for PTT in Bangkok told DealBook that stakeholders in  the state-run company had decided the bid should be dropped.  

 After PTT announced the bid, the government questioned the move on  the grounds that state-run companies are discouraged from competing with  private enterprise in the countrys constitution.

 PTT was bidding for Carrefours Thai stores through its subsidiary,  PTT Retail Management, which runs the Jiffy convenience stores.

dealbook.blogs.nytimes.com

----------


## Ripley

> i dont think it has got much to do with the stores serving large farang populations, but more to do with who is in competition next door.
> 
> tesco and carrefour are neighbours on rama 4 and both need to put some effort into their operations, raise their standards of both stock and customer care above the usual thai norm getting away with the least possible effort.
> 
> a store with no immediate competion becomes lazy, like tesco in hua hin. its a bit of a dump really. poorly stocked and overpriced with checkout girls who are well trained in pouting but poorly trained in engaging with customers.


Tesco Locust nearest me smells like souring meat.

----------


## Mid

*Bidders circle Carrefour's Southeast Asian assets*

     A bidding  war is heating up for Carrefour's supermarkets in Thailand, Malaysia and  Singapore as the French retail giant plans its exit after failing to  take a dominant position in the region. 

  Carrefour, the world's second-biggest  retailer behind US colossus Wal-Mart, is looking to offload its 43 Thai,  23 Malaysian and two Singaporean hypermarkets in a sale some estimates  suggest could net a billion dollars.

Analysts believe Carrefour's  eagerness to sell up reflects the fact that, despite its large foothold  and the robust health of the markets, the firm has trailed competitors  such as Britain's Tesco in terms of market share.

"Carrefour is  the second-biggest retailer in the world. Perhaps being in last place in  Thailand is a reason they want to sell their business here," said Jit  Siratranont, deputy secretary general of the Thai Chamber of Commerce.

One  European banker went further.

"They did not succeed in achieving  their goal and getting themselves in a dominant position," he said, but  "there is every indication that the market is promising because there  are many contenders" to buy the stores.

Carrefour refuses to  comment on the matter, but it acknowledges that it is ready to consider  offers in the countries where it is not a market leader and has little  prospect of becoming one.

It is therefore likely to cede its  network in these three major markets, which enjoy steady growth and can  rely on a combined population of over 100 million people.

Potential  buyers are circling, with a second round of bidding expected by  November.

"The long-term potential for these assets makes them  worth investing in," Jon Wright, a London-based retail analyst with  market intelligence firm Euromonitor International, told AFP.

With  a supply chain in place, the task for buyers would be to improve  margins to boost profits, he said.

According to Wright, the  supermarket sector in Asia was worth 389 billion dollars in 2009 and is  expected to grow by 3.3 percent a year between now and 2014, compared  with around 2.1 percent growth forecast globally.

In Thailand, a  raft of international players have been linked to the bidding in recent  weeks, including retailers Tesco, Japan's Aeon and France's Casino.

Thai  companies have also been tipped as potential buyers, including retailer  Central Group, consumer goods and manufacturing firm Berli Jucker PCL  and majority state-owned energy giant PTT.

PTT however recently  indicated it was not interested, while the Wall Street Journal has  reported Aeon -- which snapped up Carrefour's Japanese assets in 2005 --  as well as Tesco were struck off for bidding too low.

According  to Kim Eng Securities strategist Mayuree Chowvikran, Berli Jucker PCL  and Casino are likely to be the key bidders in Thailand.

Singapore  may be a smaller market but it has an affluent population, including a  large expatriate community.

"Those who know how to adapt to the  local market are doing relatively well. Despite the competition, there  is still money to be made" in the city-state, said Song Seng Wun, a  regional economist with Malaysian bank CIMB.

Malaysia also appears  to be drawing interest, with deputy trade minister Mukhriz Mahathir  telling AFP in August that "other hypermarkets are keen to take over"  Carrefour's business in the country.

"There are many suitors," he  said.

Carrefour has, paradoxically, recently announced the opening  of two new stores in central Selangor state in Malaysia.

Manokaran  Mottain, senior economist at AmResearch, said he believed Malaysia  offered some interesting opportunities as "the retail market is doing  well with domestic spending looking good."

He believed the  motivation behind Carrefour's desire to retreat from the market could  either be because they are over-stretched, or that they are on the  look-out for yet more lucrative markets.

"Definitely India will be  a great market. India can provide Carrefour with great potential," he  said.

Carrefour will open its first wholesale megastore in Delhi  in November and said it has already been in discussion with potential  partners over opening traditional hypermarkets there.

uk.news.yahoo.com

----------


## phomsanuk

Heard that Casino another French retailer is interested, it would be nice to have a touch of France here, pricey but they know western food.. :France:

----------


## Thormaturge

^

Carrefour is already French.

I am hoping Central take over, but frankly anything is better than Tesco.

----------


## 12Call

Villa all the way.

----------


## Humbert

> "The long-term potential for these assets makes them worth investing in," Jon Wright, a London-based retail analyst with market intelligence firm Euromonitor International, told AFP. With a supply chain in place, the task for buyers would be to improve margins to boost profits, he said.


I thought the fixed assets were on the market, not the supply chain. If Central group acquires the assets and the stores become Big C, presumably they will not carry Carrefour brands.

----------


## Tom Sawyer

> Villa all the way.


Villa?? Give me a break ..  Everything is 20% more than ANYWHERE else. Though they have a good wine selection

I'd say we have enough Euro-Brit hypermarkets here already. A Japanese competitor might be just the thing.. (though as a farang I'd prefer Casino or Wall Mart)

----------


## 12Call

> Originally Posted by 12Call
> 
> 
> Villa all the way.
> 
> 
> Villa?? Give me a break ..  Everything is 20% more than ANYWHERE else. Though they have a good wine selection
> 
> I'd say we have enough Euro-Brit hypermarkets here already. A Japanese competitor might be just the thing.. (though as a farang I'd prefer Casino or Wall Mart)


Villa offer quality on all products under the one roof that leave the rest miles behind.

I'm not the type to run around from one store to another looking to save money and then find they have stopped stocking the required product or just out of stock.

You take in all that running around then 20% (if you say) versus wasted time and still end up without what is on the shopping list is peanuts.

----------


## Tom Sawyer

I'd also like to see a Foodland open in my area.. with the lunch counter (Took Lae Dee)

----------


## Humbert

> Villa offer quality on all products under the one roof that leave the rest miles behind.


Villa is a boutique grocery for farangs with upscale cravings. Some people actually have to buy boring things like laundry detergent and toilet bowl cleaner.

----------


## 12Call

> Originally Posted by 12Call
> 
> Villa offer quality on all products under the one roof that leave the rest miles behind.
> 
> 
> Villa is a boutique grocery for farangs with upscale cravings. Some people actually have to buy boring things like laundry detergent and toilet bowl cleaner.


Your requested products are also available from Villa.

If you run a business that require your mentioned products I would suggest Makro or nearest hypermarket.

----------


## Mid

*Casino acquires Carrefour's Thai supermarkets*

_Casino, the French retailer, is poised to acquire 40 Thai supermarkets from Carrefour, for more than 700m, beating Tesco, the worlds third biggest supermarket by sales in a hotly contested auction_ 
ft.com

----------


## Tom Sawyer

^
Glad Tesco didn't get it and also encouraging that another french retailer picked it up - maintaining western competition in the foods market is a good thing

----------


## Nostradamus

> Villa offer quality on all products under the one roof that leave the rest miles behind.


Foodland is better IMO.

----------


## Tom Sawyer

> Originally Posted by 12Call
> 
> Villa offer quality on all products under the one roof that leave the rest miles behind.
> 
> 
> Foodland is better IMO.


Agree it actually serves the '12call' type better than Villa - for most things. Seems to have pretty much everything Villa has - for a bit less. But I do also use Villa - though only when I have to (usually for a specific wine I want, etc, but little else)

----------


## BobR

I still wish Walmart would buy it.  They would run Tesco out of Thailand and back to Britain as thoroughly the Germans did at Dunkirk.

----------


## PaulBunyon

^ none of the superstores here are run as well as they are in other countries. The services stinks and the products are limited and lacking in quality. Customers in Thailand don't demand better so they don't get it. Quality should be rising but it seems to be stuck or even falling in most places besides downtown BKK supermarkets. Maybe it's symbolic of the rich getting richer and the poor poorer. Anyways that's my opinion.

----------


## Mid

*Carrefour sells Thai business to Bic G*

*Carrefour announces today the signing of an  agreement with Big C Supercentre Plc, a subsidiary of Groupe Casino in  Thailand, for the divestment of its operations in Thailand for an  enterprise value of 868 million euro. * 

                              The transaction is expected to close in the first quarter of 2011.

 This valuation corresponds to 120 per cent of the net sales of the business that is being sold and a multiple of 13.0 x EBITDA. 

 In a statement, Carrefour said that the decision to sell its  operations in Thailand is part of its strategy to focus its resources on  markets where it holds a leadership position and optimize its capital  employed. 

Carrefour's growth prospects in Thailand did not allow the  Group to envisage occupying a leading position in this market in the  medium- or long-term.

 Present in Thailand since 1996, Carrefour operates 42 stores including 34 hypermarkets (7 in full ownership). 

 Carrefour is the fifth-biggest player in organized food distribution in Thailand with a market share of 6 per cent, net sales of 723 million euro and EBITDA of 67 million euro over a twelve-month period to 30 June 2010. 

 Big C is the second hypermarket operator in Thailand, with a  portfolio of 69 hypermarkets and net sales of 1.7 billion euro over a  twelve-month period to June 2010.

nationmultimedia.com

----------


## aging one

Shit I was hoping we might move up. The Carrefour in Bali was one of the nicest supermarkets I have ever been in. A full western deli. Meat counter, seafood counter, Bakery, even the fresh veggies are bathed in a rain forest of mist every 10 minutes. Its organized and best of all they have people at the check out counters.  You get a discount of 3% if you bring your own bags. 

It was heaven, I have seen nothing like it ever here in Thailand. Big wide aisles as well.

----------


## Butterfly

are they going to rebrand the shops ? I assume so, so all the good shit from carrefour will be gone, above all the good bread in Pattaya

this is bad,

----------


## Mid

catastrophique

aucun pain

 :France:

----------


## Butterfly

^ exactly and no more cheese  :Razz:

----------


## Mid

wikimedia.org


wikimedia.org

I feel your pain  :Sad:

----------


## Lambik

Cheese and bread bid at Friendship is not bad at all.

----------


## Tom Sawyer

I misread earlier. So we're indeed moving backward, not forward. What a shame - more Big C - a slightly more downmarket version of Tesco in my view. 

Yes Walmart would have been welcomed compared to this.

----------


## StrontiumDog

*http://www.nationmultimedia.com/2010...-30142335.html
*
*Shake-up looming in retail sector*

                            By Business Desk
The Nation
                                             Published on November 16, 2010                

*Big C’s Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus* 

                                                            The retail  industry is set for a major shake-up as  France-based Carrefour, a large  hypermarket operator here, has decided  to sell its branches in  Thailand to Big C Supercentre. 
Big C, a subsidiary of Groupe Casino of France, will pay ค868  million  (Bt35.5 billion) for Carrefour’s 42 branches, making it the  Kingdom’s  largest hypermarket chain with 103 branches.  

Tesco Lotus, currently No 1 in terms of hypermarket outlets, will slip to second place.  

A source from the retail industry yesterday said that following  Groupe  Casino’s acquisition, Thailand would see more intensive  neck-and-neck  competition between Big C and Tesco Lotus, which would  benefit  consumers. 

“Big C wants to take the growth benefit from rapid store  expansion. It  also wants to protect and take market share and enjoy  cost-efficiency  benefits from the bigger chain. Big C will also have  higher bargaining  power with suppliers,” said the source. 

Tul Wongsuphasawat, president of the Marketing Association of  Thailand,  said the success of the deal depended on how effectively Big C  merged  the two companies’ operations, as they have a different business   culture, management, operational staff and support infrastructure such   as IT systems. 

“If the merger is conducted smoothly, Big C will gain higher   operational efficiency from the larger store network. It also depends on   the company’s strategy as to whether it will pass on those benefits to   Thai consumers and society,” he said. 

An executive at Central Foods Retail, operator of the Tops  Supermarket  chain, said the takeover would help balance the bargaining  power with  local suppliers between Big C and Tesco Lotus. Consumers  would then see  financial benefits, especially from lower retail prices.  

“The move will not however impact Tops Supermarket as we target a   different segment, of upper-middle-class shoppers,” said the executive. 

Big C expects its combined business with Carrefour to increase   financial returns by 1.2 per cent, based on combined 2010 estimated   sales on a run-rate basis. The synergies are expected to be fully   implemented by 2013.  

The company plans to finance the acquisition with existing cash flow as well as borrowing, it said in a press statement. 

Big C shareholders will vote on the deal at an extraordinary  meeting on  January 5. If approved, the transaction will be completed in  the first  quarter of next year. 

“Big C and Carrefour’s Thai networks present strong geographical   complementarities enabling Big C to double its presence in greater   Bangkok. With 103 hypermarkets in total and a combined 2010 estimated   turnover of over Bt100 billion, Big C will significantly expand its   market position and will be close to being the leader in the hypermarket   segment,” the company’s statement said. 

In a separate statement, Carrefour which entered the Thai market  in  1996, said it was selling the business in Thailand as growth  prospects  did not allow the group to build a leading position in the  medium or  long terms.  

It holds a market share of 6 per cent and had net sales of ค723  million  and earnings of ค67 million over the 12-month period to June 30.   

Deputy Commerce Minister Alongkorn Ponlaboot said the retail  industry  and consumers should benefit from the deal, but the government  would  also closely monitor it for any competition implications.  

He also acknowledged the likelihood of higher pressure on  suppliers,  and promised to closely monitor the merged entity’s  price-cutting  policy to ensure a level playing field. 

According to the Bureau of Business Competition, the number of   hypermarket stores in the Kingdom has increased considerably in the past   decade, from only 65 outlets to 864 as of November 5 this year.  

There are now 693 Tesco Lotus hypermarkets, 82 Big C outlets, 41 Carrefour stores and 48 Makro stores. 

In terms of revenue, Tesco Lotus controls 40 per cent of the  market  with Bt135.93 billion generated last year, followed by Makro with   Bt79.51 billion, Big C with Bt79 billion and Carrefour with Bt27.92   billion.

----------


## Tom Sawyer

> *Big Cs Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus*


No it won't - exactly the opposite will occur. There is now less competition not more. How the idiots at the Nation manage to stay in business God only knows. And they claim they are a "business" paper..

----------


## Che

Disappointing, but hopefully an oppertunity for another good player or too to come in.

----------


## phomsanuk

Big Cs Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus,

Latest 




Casino aquires Carrefour's Thai supermarkets,

A few days ago

Big C's Bt35-bn takover of Carrefour set to benefit consumers,

Today

----------


## Thetyim

^
Casino Group is the major share holder of BigC

----------


## Butterfly

Casino is also the big French competitor of Carrefour,

----------


## PaulBunyon

Eventually all the superstores outside of BKK will just sell Mama noodles, cooking oil, and chang beer. Ever so slowly they are reducing their total number of product choices. 

I thought BigC might be Thai-owned. It just goes to show you what this French owner plans for Thailand. It plans Mama noodles, cooking oil, and Chang beer. Is a foreign company really needed to push this shit?

----------


## Thaihome

> Originally Posted by StrontiumDog
> 
> 
>  
> *Big Cs Bt35-bn takeover of Carrefour set to benefit consumers; competition will intensify with rival Tesco Lotus* 
> 
> 
> 
> No it won't - exactly the opposite will occur. There is now less competition not more. How the idiots at the Nation manage to stay in business God only knows. And they claim they are a "business" paper..


 
The reasoning behind that statemet is explained several times in the article. 

_""...Big C wants to take the growth benefit from rapid store expansion. It also wants to protect and take market share and enjoy cost-efficiency benefits from the bigger chain. Big C will also have higher bargaining power with suppliers, said the source. "_

_""...If the merger is conducted smoothly, Big C will gain higher operational efficiency from the larger store network. "_

_"...takeover would help balance the bargaining power with local suppliers between Big C and Tesco Lotus. Consumers would then see financial benefits, especially from lower retail prices. "_

Of course, this is all offset by the simple statement"

_"It also depends on the companys strategy as to whether it will pass on those benefits to Thai consumers and society_, 

Which probably depends on if either company starts a price war to increase market share. 
TH

----------


## Mid

*Carrefour deal might affect small-and-medium suppliers* 
Sodchuen Limkriangkrai

*BANGKOK,* 17 November  2010 (NNT) - Small and medium-sized suppliers are worried that the  acquisition of Carrefour operations by Big C will make it more difficult  for them to sell their products through hypermarkets. 

Chairman of wholesaler and retailer association Somchai Ponratanacharoen  said that producers and consumers bargaining power will increase if  they have several hypermarkets to choose from; however, with only two  market chains, Tesco Lotus and Big C, dominating the market, there will  be less incentive for them to compete in terms of prices and services.  Unless the government comes up with measures to control the segment,  consumers will have to pay the price, resigning to paying through the  nose for their purchases 

The association, therefore, demands the government speed up with the  issuance of the laws regulating the wholesale and retail segment. The  government should also support local suppliers enabling them to have  stronger bargaining power given they have been unable to compete in the  past, resulting in many of them having to close down.       

thainews.prd.go.th

----------


## Tom Sawyer

^
Yup.

----------


## Humbert

A number of Carrefour locations are in strong farang customer based areas. Namely Rama 4 and Ratchadapisek in Bangkok and the Pattaya branch. Carrefour merchandised these to appeal to farangs with a large offering of western food specialties. I wonder how Big C will treat these branches? I think the Big C with the highest concentration of farangs may be the branch on Ekamai and from my experience, it sucks in comparison to Carrefour.

----------


## Tom Sawyer

^
I doubt they will follow suit. We make up such a small percentage of their business it probably isn't worth their time - they want to corner the Thai market.

----------


## phomsanuk

I didn't know that Big C is owned by Casino, another French giant retailer as I've not noticed any Gallic influence there, if Casino gets more involved we may see more of a Carrefour type shopping experience.

----------


## Tom Sawyer

I just cringe at the thoughts of MORE downmarket Big C's

----------


## Humbert

http://www.bangkokpost.com/business/retail/214655/big-c-begins-overhaul

*Big C begins overhaul*

*Carrefour name goes but products will stay* 

Big C Supercenter Plc has begun the transformation of the Carrefour outlets it purchased last year from the French retail chain, starting with a 350-million-baht re-imaging exercise.
The company has no plan to close any of the 42 Carrefour stores because many are located in strategic central Bangkok locations that would augment the network of Big C, whose major stores are located in suburban areas and the provinces, said Rumpa Kumhomreun, chief financial officer and vice-president for accounting and finance.
As well, she said, Carrefour customers generally had higher purchasing power than those who traditionally shopped at Big C. Consequently, the signs on the former rival's stores will change to Big C but the merchandise inside will remain the same as before.
The company expects all the new signs to be in place in six to 12 months but says the complete transformation will take three years.
It also sees no problem with potential overlapping service areas.
"Overlap doesn't mean cannibalise," said Praphan Eamrungroj, executive vice-president for properties. "Both Carrefour and Big C have their own customers in each location. What we want to do after changing the brand to Big C is to ... win Carrefour consumers' hearts and keep them shopping there."
Mr Praphan said the company would even build bridges connecting Carrefour and Big C stores that are located near each other.
Apart from the 350 million baht for signage, other funds would be spent re-branding Big C in the coming months.
Ms Rumpa said the takeover would enable Big C to cover all customer groups and grow in the future.
Moreover, the company will benefit from the combination of product purchases, advertising and sharing expenses, resulting in higher bargaining power and better prices.
"It took us about eight years to open 42 new outlets. Also, it's very difficult to open our own new outlets in downtown areas, where Carrefour has sites at present, because of limitations of city planning," she said.
As of Nov 30, Big C had 71 hypermarket stores, 13 Mini Big C outlets and 27 Pure stores and two Big C Junior locations.
After the conversion, Ms Rumpa said, sales of Big C would climb to 110 billion baht by the end of 2011, up from 70 billion last year.
Preeyanun Tripetchchuporn, an analyst at Phillip Securities, said Big C had made good preparations for the conversion. Carrefour and Big C have their own customer bases even their stores are just located opposite of the road.
"I don't think Big C will lose some mid-range to high-end Carrefour customers once the stores are converted. Big C will try hard to maintain the premium positioning of Carrefour and some premium products would probably be sourced from Groupe Casino in France to serve Carrefour customers," she said.
Yves Braibant, the CEO of Big C, said he aimed to make it the country's biggest hypermarket operator, surpassing Tesco Lotus, but he did not give a timeframe.
Big C yesterday sought shareholder approval for 38.5 billion baht in bank loans. The lenders have not been chosen but the company expects to pay an interest rate of 4.5% or less. About 35.4 billion baht would be used to purchase the Carrefour assets and the rest as revolving funds at Carrefour.
Big C's debt-to-equity ratio in 2011 will rise but will not exceed 2.5 times, as it will have more cash flow from sales at Carrefour stores. It expects to repay its loans within five years.
Although Big C has acquired more branches, it will open two new hypermarkets this year, one of them in Tak province.
Mr Praphan said the local hypermarket sector had not saturated yet. The company believes it takes a catchment area of 120,000 people to support one hypermarket. However, it has to be more cautious to ensure it obtains an optimum return on investment.
BIGC shares closed yesterday on the SET at 90 baht, up 50 satang, in trade worth 58.36 million baht.

----------


## Tom Sawyer

More mediocrity. No thanks. What a missed opportunity for a Wall Mart et al to enter.

----------


## Ticino

It is all about market share. While we all regret seeing Carrefour folding up it is a fact, that most of us went there for possibly 2% of the stores turnover. With cheese, créme fraîche, moutarde a l'ancienne etc. you will not make it. 
I assume it will be just another couple of dozens of stores with 4 x 12 meters of CocaCola offerings; sugar and oil in short supply and the meat section like the backdoor of a 19th century butchery.

----------


## Seekingasylum

I still don't understand the extent of some posters angst about the demise of Kowfoo. 

At best their so-called high end supermarket sold a few cheeses, the same old imported cured meats and salami available in any of the decent supermarkets to be found in the Emporium, Central and Siam Paragon malls and a basket or two of assorted baguettes. Beyond that, there was little to distinguish them from any  Big C. Both meat counters reflect the Thai demand for inferior products piled high and sold cheap and their vegetables are equally unattractive and not entirely dissimilar to Tesco Lotus' offerings

Thai supermarket standards, in relation to Western outlets, are as we all know quite abysmally low but that is to ignore the fact that compared to the alternatives, a rat infested street market or mom & pop's local corner shop, they are a revelation to the urban Thai.

For those of us who choose to live in either Bangkok or Pattaya the scope to obtain decent produce is still wide, albeit expensive, and frankly Kowfoo was never ever that much of a competitor. 

Most of the hysteria seems to emanate from expat Froggies but as ever that has probably more to do with neurotic jingoism rather than anything else more sensible.

----------


## Thaihome

> ...Most of the hysteria seems to emanate from expat Froggies but as ever that has probably more to do with neurotic jingoism rather than anything else more sensible.


 
Big C is owned by the Casino (Geant) group (or is at least the biggest stockholder), why would the frogs be upset at one French company buying out a business line of another?
TH

----------


## Tom Sawyer

> I still don't understand the extent of some posters angst about the demise of Kowfoo.


Duracell Batteries - pack of 12 AA's - 150 THB. Would be double that in any of the other places (if you could even find them)

----------


## Humbert

Seems they are rapidly transitioning to Big C. There are some good deals to be found as they clear their inventories of Carrefour brands. I picked up some delicious brie for half price the other day. I hope they don't screw around with the bakery too much.

----------


## peterpan

My thoughts exactly, met a french person in carrefour a couple of weeks back.
 i said the same thing to him, he replied no we aren't going to change anything in the bakery.*

Money on that it will revert to Big c style soon,*

----------


## Lambik

[quote=Humbert;1772057]..........they clear their inventories of Carrefour brands........

xxxxxxxxxxxxxxxx

In Pattaya, Carrefour brands are now replaced by Casino brands.

----------


## Sailing into trouble

> Typical French, run at the first sign of any trouble.


Of course you are thinking about the last World Cup :smiley laughing:

----------


## Sailing into trouble

For good prices CostCo would be a nice addition

----------


## Humbert

[quote=Lambik;1773115]


> ..........they clear their inventories of Carrefour brands........
> 
> xxxxxxxxxxxxxxxx
> 
> In Pattaya, Carrefour brands are now replaced by Casino brands.


The Pattaya and Bangkok Rama IV branches have the best assortments for farangs. Ratchadapisek is fair. Ladprao has rebranded to Big C because the market there is predominantly Thai. It will be interesting to see how the Casino brand assortment compares to Carrefour's private label assortment.

----------


## Lambik

^
In France the range of Casino labelled products is similar to the Carrefour ones.

----------


## donald36

> My thoughts exactly, met a french person in carrefour a couple of weeks back.
>  i said the same thing to him, he replied no we aren't going to change anything in the bakery.*
> 
> Money on that it will revert to Big c style soon,*


They already have ----bread previously in brown paper bags---it keeps it crisp and no doubt bags more expensive, now in the usual poly bag--so it sweats ---price still the same 

Might as well buy tesco byread -not as good as Carrefour but only 75 per cent the price

----------


## Lambik

In Pattaya they started to remove the Carrefour signboards as well as repaint the building in Big C colours .

----------

