Carrefour, the world’s second-largest retailer, is to withdraw from Russia just four months after opening its first store in the country.
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The French retail giant made the surprise announcement after the market closed yesterday (15 October) as it posted a 2.9% drop in third-quarter sales.
The move follows reports that Carrefour’s largest investors – Colony Capital and Bernard Arnault – were placing the company’s management under pressure to sell its operations in emerging markets.
The world’s second-largest retailer said the decision to quit Russia was reached given the “absence of sufficient organic growth prospects” and “acquisition opportunities” that would have allowed the business to attain a “position of leadership” in the market.
Sales for the third quarter totalled EUR24.02bn (US$35.81bn), compared with EUR24.72bn last year.
Although Carrefour insisted it was “on track” to meet its 2009 objectives, the company also suggested that full-year profits would likely fall in the lower-end of its guidance range of EUR2.7-2.8bn.
For the full press release click here, or check back later for just-food’s insight into Carrefour’s third quarter.
