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Group F Carrefour S Misadventure In Russia CASE

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Group F Carrefour S Misadventure In Russia CASE
BSTR/363
IBS Center for Management Research

Carrefour’s Misadventure in Russia
This case was written by P. Indu, under the direction of Vivek Gupta, IBS Center for Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.

License to use for the MBA Program, Group J,
Icfai University Tripura.
Licensed to print 1000 copies, 02 August, 2011.
License valid upto 01 November, 2011.

2010, IBS Center for Management Research. All rights reserved.
To order copies, call +91-8417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally,
Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@icmrindia.org

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BSTR/363

Carrefour’s Misadventure in Russia
“In the space of just four months, Russia has gone from a “strategic priority” to an afterthought at
Carrefour, the giant French retailer.”1
- New York Times, in October 2009.
“Carrefour’s pending exit underlines the fact that Russia remains a highly challenging market despite its fundamental draw. Although MGR (Mass Grocery Retail) sales are forecast to strengthen by a dynamic 66.4% to RUB 1,423bn (US$ 48.53bn) through to 2014, the country’s business environment is among the least forthcoming in emerging Europe. Despite topping our
Q110 food and drink regional business environment ratings, Russia’s market risks score
(encompassing regulatory environment and barriers to entry) is the region’s second lowest behind
Ukraine.”2
-

Business Monitor International3, in October 2009.

CARREFOUR EXITS RUSSIA
On October 15, 2009, just four months after opening its first store in Russia, France-based
Carrefour SA (Carrefour), the second largest retailer in the world, announced that it planned to exit the Russian market. The company announced, “Carrefour has decided to sell its activities in Russia and pull out of


References: 1. Carrefour to Approach from Regions, www.kommersant.com, November 09, 2006. 2. Carrefour or Perekrestok – What will Russians Prefer? www.freshplaza.com, January 11, 2007. 3. Russia’s Retail Revolution, www.managementtoday.co.uk, June 01, 2008. 4. Carrefour Starts the Investment Programme in Krasnodar Region (South Russia), www.carrefour.com, September 22, 2008. 5. Jess Halliday, Russian Regions Present New Possibilities for Food Firms, www.foodnavigator.com, October 21, 2008. 6. Carrefour to Open at Least Three Russian Stores in 2009, www.reuters.com, April 15, 2009. 7. Javier Espinoza, Carrefour Flirts with Seventh Continent, www.forbes.com, April 20, 2009. 9. Javier Espinoza, Carrefour Wants a Piece of Russia, www.forbes.com, May 05, 2009. 10. Javier Espinoza, Carrefour May be Moving to Russia Soon, www.forbes.com, May 05, 2009. 11. Lionel Laurent, Carrefour 's Mission to Moscow, May 29, 2009. 12. Carrefour Starts Business Operations in Russia and Moves Forward with its International Expansion, Press Release, Groupe Carrefour, June 18, 2009. 13. Javier Espionoza, Carrefour May be Stumbling with Russian Dreams, www.forbes.com, June 18, 2009. 14. Carrefour Opens First Russian Store, www.russianamericanchamber.com, June 19, 2009. 15. Carrefour Opens up in Moscow for the Longer Term, http://rt.com, June 19, 2009. 17. Carrefour Says Looking at Acquisitions in Russia, www.ibtimes.com, September 10, 2009. 18. Carrefour Mulls Exit from Latin America – Le Monde, http://uk.reuters.com, October 07, 2009. 19. Carrefour Says Looking at Acquisitions in Russia, www.reuters.com, October 09, 2009. 20. French Hypermarket Chain Carrefour Leaves Russian Market, http://en.rian.ru, October 15, 2009. 21. Ladka Bauerova, Carrefour Replaces Head of French Superstores, Exits Russia, www.bloomberg.com, October 15, 2009. 22. Carrefour to Exit Russia, Hit by Challenging Markets, www.reuters.com, October 15, 2009. 23. Scheherazade Daneshkhu, Jonathan Birchill Carrefour Beats Hasty Russian Retreat, www.ft.com, October 15, 2009. 24. French Hypermarket Chain Carrefour Leaves Russian Market, http://en.rian.ru, October 15, 2009. 25. Lionel Laurent, Robin Paxton, Carrefour to Exit Russia, Hit by Challenging Markets, www.reuters.com, October 15, 2009. 26. Ladka Bauerova, Carrefour Replaces Head of French Superstores, Exits Russia, www.bloomberg.com, October 15, 2009. 27. Matthew Saltmarsh, Andrew E. Kramer, French Retailer to Close Its Russia Stores, www.nytimes.com, October 16, 2009. 28. Carrefour to Quit Russia, http://store.businessmonitor.com, October 16, 2009. 29. Carrefour Reports Challenging Q3, Exits Russia, www.igd.com, October 16, 2009. 30. Carrefour Abandons Russia, www.fis.com, October 16, 2009. 31. Carrefour to Quit Russia, ehttp://store.businessmonitor.com, October 16, 2009. 32. Retail Market Fight too Tough for Carrefour, http://rt.com, October 16, 2009. 33. Carrefour to Exit Russia, Hit by Challenging Markets, www.reuters.com, October 16, 2009. 34. Jennifer Creevy, Carrefour to Pull out of Russia, www.retail-week.com, October 16, 2009. 35. Retail Market Fight too Tough for Carrefour, http://rt.com, October 17, 2009. 36. Carrefour: Abandoning Russia, Datamonitor, October 19, 2009. 37. Carrefour Turns its Back on Russia’s Promise – Fast, www.worldfinance.com, October 19, 2009. 38. Carrefour to Keep Operating in Russia Until Selloff Complete, http://en.rian.ru, October 19, 2009. Petersburg Times, October 20, 2009. 40. Jason Bush, Russia 's Foreign Investment Revival? www.forbes.com, October 20, 2009. 41. Greg Hodge, Carrefour’s Retreat from Russia a Mysterious Move, www.retailweek.com, October 23, 2009. 42. Carrefour Abandons Russian Food Retail Market, www.stat-usa.gov, November 03, 2009. 43. Tim Gosling, Russian Supermarket Chains - Seats Reserved at the Top Table, http://businessneweurope.eu, November 3, 2009. 44. Deloitte Global Powers of Retailing, 2009. 45. Carrefour Annual Reports, 2005-09.
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