Thread: Carrefour to exit Thailand, Singapore and Malaysia

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.

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.

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

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.

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

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

Originally Posted by Bettyboo

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.

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'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.

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

Originally Posted by 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.

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.

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.

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

Originally Posted by zygote1

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?

• Published: 6/07/2010 at 08:38 PM
• Online news: Breakingnews

Carrefour 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

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

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.

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

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.

Originally Posted by Thaihome

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.

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.

Originally Posted by zygote1

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.

Originally Posted by Jet Gorgon

Nah. They're struggling because they are French.

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