Carrefour China Successfully Introduced Strategic Investment From A Government-backed Capital Platform

On Febuary 20, 2023, Monday, Carrefour China, part of retail corp Suning.com, has successfully introduced strategic investment from a government-backed capital platform to collaborate on supply chains, capital and operations. Suning.com is the majority shareholder of Carrefour China because in 2019 it purchased 80% of Carrefour China’s operations at a price of RMB 4 billion yuan. The signing ceremony was held in Nanjing, Jiangsu Province. The signing parties were Mr. Ren Jun, President of Suning.com, and Mr. Zhang Honghai, Secretary of the District Party Committee, Yingjiang District, Anqing City, Anhui Province,P.R.China.

The year of 2022 was an unusual year for Carrefour China. According to Brand Value (China )Network, in  the year of 2019, Carrefour China has about 210 comprehensive supermarkets and 24 convenience stores in China. In the first three quarters of 2022, Carrefour China closed 54 stores, and the remaining 150 stores were still in operation.In 2020, Carrefour China lost RMB 795 million yuan and in 2021, Carrefour China lost RMB 3.33 billion yuan. From January to June, 2023, Carrefour China lost RMB 471 million yuan. The COVID-19 Pandemic and online shopping are believed to be the two primary reasons for its poor financial performance. In the year of 2022, Carrefour China issued a statement claiming that“the retail industry is facing unprecedented challenges and Carrefour is making an active transformation and upgrading to tackle with the challenges。”In addition, Carrefour China officially denied its bankruptcy rumors in January 10, 2023 and also responded to its massive empty shelves in its supermarkets in China on Febuary 5, 2023.

       Carrefour was established in France in 1959 and in 1999, it became the no.1 biggest retailer in Europe and no.2 biggest retailer int the world. Carrefour officially entered the market of Chinese Mainland in 1995, mainly engaged in large-scale supermarket business.

Based on China Brand Value Evaluation Standard, it’s a good thing that Carrefour China successfully introduced strategic investment from a government-backed capital platform. The COVID-19 Pandemic is almost gone and Chinese economy has got off to a stable and good start this year, which will help Carrefour China definitely. Furthermore,  according to the Ministry of Commerce of China, “ it is vital to rapidly promote the recovery of the retail industry, improving the efficiency of supply chains, so as to achieve high-quality development of the retail industry”, which should be a good policy for the whole retail industry. Carrefour should be on the ranking list of“World Brand Value Top 900.”

On the ranking of “The 2nd Daguan·Keweiwei World Brand Value Top 900” released on July, 2022, Carrefour’ s brand value was 119.184 billion RMB, ranking the 207th.

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Author:   杨瑞安

Views:   435760