Carrefour's Misadventure in Russia
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Case Details:
Case Code : BSTR363
Case Length : 16 Pages
Period : 1996-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Carrefour SA
Industry : Retail
Countries : Russia, France
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"In the space of just four months, Russia has gone from a
"strategic priority" to an afterthought at Carrefour, the giant French
retailer."1
- New York Times, in October 2009.
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"Carrefour's pending exit underlines the fact that Russia remains a highly challenging market despite its fundamental draw. Although MGR (Mass Grocery Retail) sales are forecast to strengthen by a dynamic 66.4% to RUB 1,423bn (US$ 48.53bn) through to 2014, the country's business environment is among the least forthcoming in emerging Europe. Despite topping our Q110 food and drink regional business environment ratings, Russia's market risks score (encompassing regulatory environment and barriers to entry) is the region's
second lowest behind Ukraine."
2
- Business Monitor International3, in October 2009.
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Carrefour's Misadventure in Russia
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