Carrefour sells controlling stake in China unit to Suning
Carrefour has announced the sale of an 80% stake in its Chinese operations to local retailer Suning.com, on the back of slowing sales momentum and fierce competition in the world’s second-largest retail market. Subject to approval, the transaction is expected to close by the end of the 2019.
Carrefour entered China in 1995, building up a network of over 230 hypermarkets and convenience stores. However, the retailer has struggled to generate momentum as the growth of ecommerce giants like Alibaba, JD.com and Pinduoduo has rapidly eaten into consumer goods market shares. Despite recent efforts at revival, including a tie up with tech giant Tencent and the launch of a high-tech store concept, sales have eroded, with our latest figures showing a CAGR of -8.1% (in USD) from 2013-2018.