Thailand's Big C, Berli Jucker - Best Candidates For Carrefour

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Big C, Berli Jucker - best candidates for Carrefour

By KWANCHAI RUNGFAPAISARN

THE NATION

Industrial experts believe that Big C Supercentre and Berli Jucker might be the two best candidates to take over the local operations of Carrefour.

Carrefour, the French conglomerate and the world's second-largest retailer, is planning to leave Singapore, Malaysia and Thailand, and is seeking offers for its units in these countries.

A source in the local retail industry said he did not think existing giants like Big C and Tesco Lotus would be interested in acquiring Carrefour, because most of their stores were quite close to their French counterpart's outlets.

"Berli Jucker is the only candidate that has never been involved in retail business before. The company has plenty of consumer goods in its portfolio and would do well as a retailer should it take over Carrefour," the source said.

Berli Jucker, a manufacturing and trading conglomerate with liquor tycoon Charoen Sirivadhanabhakdi as chairman, recently expressed strong interest in bidding to take over Carrefour's operations in the region.

President Aswin Techajareonvikul said Berli Jucker was bidding for Carrefour because going into retail would help the company realise its potential and boost its value in the long run.

However, he said, the company had not received any details of the bidding or acquisition timetable from Carrefour yet. It is evaluating the merits of an acquisition, something many other companies have also shown interest in.

On the other hand, a source from the food and beverage industry argued that the Carrefour takeover should be left to Big C Supercentre. The source reasoned that Charoen had no skills in the retail business, and that his previous retail projects had failed due to the lack of proper management. Plus, the source said, Carrefour outlets were not in good locations because Tesco Lotus often beat them to it.

Another source said Carrefour had made mistakes when starting off in Thailand, and had now decided to pull out because it could not make the sort of money demanded by the head office in France.

"Carrefour positioned itself incorrectly, aiming for consumers in the up-market segment and selling products that can only be consumed by Bangkokians," the source said.

Meanwhile, Supaluck Umpujh, executive vice president of the Mall Group, said she had been hearing rumours about Carrefour pulling out of Thailand since last year.

"Discount stores are a low-margin business, and running such a business is not easy," she said, adding that Thailand had been suffering from political problems for many years. Besides, she said, competition driven by the three major discount store operators in Thailand - Tesco Lotus, Big C and Carrefour - was quite intense.

In addition, she said, some provinces had too many discount stores and consumers had far too many choices.

"I cannot say if we [The Mall Group] are interested in acquiring Carrefour operations in Thailand. Also, Carrefour has not officially contacted us," she said.

-- The Nation 2010-07-28

[marvinberry]

No way! I practically live in Carrefour in On Nut!!

Oh well, at least it will put an end to the Thai/foreign debate as to how it 'should' be pronounced! Ha Ha

[SomTumTiger]

Wal Mart

[BKjohn]

In my opinion, the management should split the operation into Bangkok and "up-country" outlets and vary the goods offered accordingly. The up-country versions could even be named differently than the ones in Bangkok and concentrate on low price local produce with may be a "Euro" corner in each store for those farangs living there. The Bangkok stores should go more up market Thai and Farang with more international food at prices well below Villa or TOP but more choice than Foodland or TOP.

A foodcourt offering farang food as well would certainly help.

None of the existing chain stores here is perfect or anywhere near perfect, even though they could be considering their resources. Foodland for example is usually out of bread and bread rolls by noon, even though they salvage stale bread by turning it to bread-crumbs which they sell very well. Tesco is a terrible store whith very limited selection of groceries and generally of low quality.

Carfour was the closest in Bangkok and its a shame they are closing.

[ESB7]

No way! I practically live in Carrefour in On Nut!!

Oh well, at least it will put an end to the Thai/foreign debate as to how it 'should' be pronounced! Ha Ha

car4

[mdechgan]

No way! I practically live in Carrefour in On Nut!!

Oh well, at least it will put an end to the Thai/foreign debate as to how it 'should' be pronounced! Ha Ha

car4

I thought is was car foo!

[farangpattaya]

No way! I practically live in Carrefour in On Nut!!

Oh well, at least it will put an end to the Thai/foreign debate as to how it 'should' be pronounced! Ha Ha

Kaafoo?

[geriatrickid]

Only another retailer with local market experience will be able to make a go of the money losing Thai Carrefour operations. Rationalization of supply chain, increased economy of scale etc. and a knowledge of local purchasing behaviors are key.

[givenall]

Only another retailer with local market experience will be able to make a go of the money losing Thai Carrefour operations. Rationalization of supply chain, increased economy of scale etc. and a knowledge of local purchasing behaviors are key.

Who cares? I shop in local market most of the tme anyways and prices are much lower than all this super stores

[Beetlejuice]

If Carrefour`s could not make it pay, I cannot see how any other similar supermaket companies can make a success of it.

Maybe open the premises to market traders.

[andyww]

Who are these "Industrial experts"? They are talking nonsense.

The fact that Carrefours stores are close to Tescos is irrelevant in whether Tesco will make a bid. Do they think Tesco would rather the stores fall into others hands just becasue they are close to their own?

There is little doubt that Tescos will be looking closely at a bid but the outcome will depend on whether they can get them for what they consider to be the right price. Tescos shareholders are already salivating and the share price has risen on the possibility of a buyout.

[haveaniceday]

Meanwhile, Supaluck Umpujh, executive vice president of the Mall Group, said "some provinces had too many discount stores and consumers had far too many choices."

Oh My Goodness, can't let the consumers have to many choices. Go back to your cave.

[cjars]

http://topnews.com.sg/content/22810-carrefour-denies-selling-its-malaysia-singapore-or-thailand-stores

Carrefour denies this apparantly