RUSSIA: Carrefour considering Russian comeback | Progresiv
Majid Al Futtaim, which operates Carrefour hypermarkets and supermarkets under a franchisee agreement with Carrefour in Middle East and Central Asia, is exploring the opportunity to launch Carrefour hypermarkets in Russia. The first store could be open in the city of Kazan. 
Whereas Carrefour found Russia challenging, Majid Al Futtaim sees opportunities in tier two cities like Kazan. Carrefour entered Russia in 2009 when it launched its first store in Moscow, but announced divestment from the country a few days after the store opening, as it found it challenging to find a secure landscape for its organic expansion.
Majid Al Futtaim has been successfully expanding Carrefour hypermarkets and supermarkets in 12 countries of Middle East and Central Asia, including Iraq and Pakistan, suggesting that the company is able to operate in difficult market conditions and adapt the hypermarket concept to local shopper.
In Russia, Majid Al Futtaim is likely to expand its hypermarkets in smaller cities of Central Russia, but it will face competition: Russia’s largest retailer Magnit, as well as Auchan and Lenta, have been also targeting these cities. (Majid Al Futtaim bought out Carrefour’s 25% stake in the company Majid Al Futtaim Hypermarkets for €530 million in 2013. Its franchise partnership with the Carrefour Group will expire in 2025.) (www.retailanalysis.igd.com)
