The start of the Modi era has seen the exit of a potential multi-brand retailer, Carrefour, from India. Dominating the Europe retail market, Carrefour, made its India entry in December 2010, opening its first cash-and-carry store in Delhi, with initial plans to open 15 such stores by 2011. The French company had announced in July 2014, the decision to close all of its five stores (Delhi, Jaipur, Bangalore, Agra and Meerut) in three months.
As part of Carrefour’s Chief Executive, George Plassat’s three-year plan to part with loss making investments, the company now wants to focus on its domestic hold, Europe, where it has nearly 9000 stores. The company began its exit sessions since 2012 from countries like Singapore, Indonesia and Malaysia. India is this season’s pick.
In 2010, the Indian retail industry was valued at $500bn. The exit move of the world’s second largest retailer comes at a time when the retail industry of India is on the verge of crossing the $1tn mark. Though the reason stated for the exit is ‘internal,’ the Indian regulations on FDI in retail could as well have triggered it.