Carrefour back in India: French retailer charts multi-year push for 50 stores

Twelve years after pulling the plug on its wholesale cash-and-carry venture in India, French grocery titan Carrefour has staged an ambitious return to the subcontinent, this time wagering on consumer hypermarkets, supermarkets, and a franchise partnership with Apparel Group. The French retail behemoth enters the market on strong global footing, having closed the 2025 fiscal year with an annual revenue of approximately $95.06 billion and reporting second-quarter 2026 sales of €22.7 billion on a 1.9% like-for-like growth. In an exclusive interview, Patrick Lasfargues, executive director – International Partnership at Carrefour, outlines the strategic logic behind returning via a franchise model, cracking local supply chains, and adapting private labels and format strategies to take on India's fiercely contested retail landscape. Excerpts:

This is your India comeback. What is the big picture plan for the market, and how will you grow here?

Patrick Lasfargues: Actually, we are very happy to make this comeback now in Noida with the hypermarket. We left the market about 12 years ago with five Cash and Carry stores in Delhi, and there are big differences between that period and now.

At the time, it was an investment from the Carrefour Group from France with French expats focusing on B2B, because legislation then was quite complex for B2C. Later, we decided to leave the market for strategic reasons at the Carrefour Group.

Since 2018, we have engaged in a strong international development strategy, opening 15 new markets. Due to the magnitude of the market and the population, we had to come back to India. We decided to partner with Apparel Group on a franchise model. Carrefour is not investing directly; Apparel Group is investing here in India, focusing directly on consumers through hypermarkets and supermarkets.

We believe there is still room for physical stores in India, starting with our initial focus in Delhi. Later, we will explore e-commerce, quick commerce, and dark stores. The first two weeks of opening show that customers are coming. They appreciate the customer experience in a shopping mall, buying both groceries and non-food products.

When you left 12 years ago, what were the challenges? How has the landscape changed for you to feel this is the right opportunity and that you are not too late?

Lasfargues: There is strong competition in India, and they have done a good job. However, the proposition we are bringing with Apparel is different in terms of pricing and assortment.

The franchise model resolves the previous challenge of not being able to enter B2C alone. All those legal obstacles have vanished. At the same time, the economy has developed significantly along with the purchasing power of Indian consumers. Thanks to government reforms over the past decade, India is a dynamic market with GDP growth of over 7%. There is ample room for an international player like Carrefour—backed by strong standing in the GCC and globally—to bring its know-how to Apparel’s franchise network.

In terms of investment, how much are you pouring in, and what are the group's expectations regarding ROI?

Lasfargues: We are not communicating specific figures so far because this is the first store. It is not a test, but it is the first store, and our franchisee Apparel is a privately owned group.

What I can say is that the initial figures from the first two weeks are very positive. We are confident about opening new stores, including a supermarket in four weeks, and then accelerating development across Delhi-NCR and Uttar Pradesh.

India is one of the most competitive grocery markets in the world. How do you compare it globally, and what is your differentiated approach here?

Lasfargues: It is indeed very competitive on price and margins. The widespread presence of kiranas makes it a very specific market unlike any other. To succeed here, execution is key — managing manpower, avoiding product shortages, and keeping stores clean to deliver an optimal customer experience. Strong execution is how we will compete.

What key learnings from other markets will you apply to India?

Lasfargues: Pricing, promotions, and fruit-and-vegetable displays are critical for the Indian market. Globally, Carrefour operates in 40 countries across 15,000 stores. That gives us extensive experience in store formats, assortment, merchandising, pricing, and loyalty programs.

We adapt our best practices locally. For instance, our Noida store has no butchery or fishery section to align with local consumer preferences, unlike Argentina, where butchery is a major component. We adapt and bring our best offerings to India.

India has evolved from kiranas to malls, supermarkets, e-commerce, and now quick commerce. What gives you the confidence that Carrefour will succeed, and what metrics determine that?

Lasfargues: Our confidence comes from store execution. I visited many competitors over the past two years. If we execute well and offer a true one-stop shop—fresh food, groceries, and non-food—customers will visit the mall and shop at Carrefour. They may use quick commerce or e-commerce at times, but they still want to visit physical stores. Early metrics over the past two weeks, average basket size and unit counts per trolley, have been very encouraging.

Many global chains take a gradual approach to India. Having been here before, will your expansion be slow or rapid?

Lasfargues: It will be relatively measured, because the market today is completely different from 12 years ago. India has changed dramatically and positively.

Even though some team members worked in Delhi 12 years ago, what they experienced then is entirely different from the reality today. What we did in that five-year stint is largely obsolete for this new partnership. We are starting from scratch, relying on local know-how, real estate expertise, and rebuilding Carrefour’s presence in India.

Quick commerce has disrupted the retail landscape, particularly FMCG. Does it make supermarkets stronger or weaker?

Lasfargues: It is neither stronger nor weaker; it is simply a different value proposition. Quick commerce serves specific needs, but in communities like Noida, there is still clear demand for physical stores.

Will you look to integrate with or bet on quick commerce in the future?

Lasfargues: Yes, that is something we will evaluate.

Does that mean running your own dark stores?

Lasfargues: We will evaluate the right model. It could involve in-store picking or a hybrid model like we use in France, where orders are prepared in designated inventory spaces behind the physical store. That hybrid approach has worked well for us in France. We will learn on the ground here and adapt our quick commerce and e-commerce strategy accordingly.

Private labels are a significant part of Carrefour globally. How will that work in India?

Lasfargues: Private labels are central to our business, accounting for around 40% of turnover in France, which itself represents half of our global operations.

In India, we plan to manufacture Carrefour private labels locally under the "Made in India" banner. We will stock them in our Indian stores and export them to the GCC and other international markets. We are actively working with Apparel to set up a dedicated private label team for differentiated food and non-food assortments.

Indian consumers are historically loyal to established FMCG brands. Will that make private label adoption challenging?

Lasfargues: We see established national brands in markets like France and Spain as well. However, when private labels offer high quality combined with the right pricing, consumers switch and stay loyal to the private brand. That transition is entirely feasible here.

What does your immediate expansion pipeline look like?

Lasfargues: In the short term, our next store will open in four weeks, followed by multiple upcoming projects. It took 18 months to open the first store, so we avoid sharing speculative targets, but we are positively aggressive in our rollout. Sizes will vary. The next market store is roughly 10,000 square feet—about one-third the size of the Noida hypermarket. Over time, we may also explore smaller convenience store formats like Carrefour Express.

Beyond retail, will India serve as a global sourcing base?

Lasfargues: Absolutely. We will source key food categories like rice and spices, as well as non-food items, to export to the GCC, Africa, and other international operations. That is an integral part of our plan.

Taking a broad view, what retail opportunities do you see in light of quick commerce? Can it diminish physical retail?

Lasfargues: Not necessarily. In other markets, we have seen quick commerce grow rapidly and then plateau. It will not replace physical stores. The opportunity for physical retail footprints in India remains massive, driven by comprehensive assortment, pricing, promotions, and the convenience of a one-stop-shop customer experience.

Given how fragmented India's supply chain can be, what are the primary operational challenges you are monitoring?

Lasfargues: The supply chain is undeniably complex. Inventory management to prevent out-of-stock situations is our top priority, and the team is tracking it daily.

Amid inflation and global disruptions, how can the Indian retail market build resilience?

Lasfargues: India's extensive domestic production base provides inherent resilience against inflation. While the issue in the Middle East and external factors like oil prices impact raw materials and plastics, India’s underlying GDP growth and domestic manufacturing capabilities will help buffer inflationary pressures.