Carrefour has blamed fierce local competition for the end of its venture in the north African country of Algeria.
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The world’s second-largest retailer today (19 February) confirmed it had decided to end its tie-up with local firm Arcofina.
Carrefour opened its first store in Algeria in 2006 but a spokesperson for the French retail giant told just-food that the two sides had decided at the start of the year to pull the plug on the venture.
“It was a mutual agreement between the two partners. There was too much competition from local shops,” the spokesperson said.
Carrefour and Arcofina had opened three stores in Algeria, which will now be converted to one of Arocfina’s banners.
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By GlobalDataThe spokesperson denied that the stores were loss making and insisted Carrefour could decide to re-enter Algeria in the future.
Earlier this month, Carrefour struck a franchise deal for the Moroccan market.
The French retail giant has signed an agreement with local supermarket operator Label’Vie to develop hypermarkets under the Carrefour banner.
