Carrefour Sells Thai Business To Big C

[webfact]

RETAIL

Carrefour sells Thai business to Big C

By The Nation

Carrefour announces today the signing of an agreement with Big C Supercentre Plc, a subsidiary of Groupe Casino in Thailand, for the divestment of its operations in Thailand for an enterprise value of 868 million euro.

The transaction is expected to close in the first quarter of 2011.

This valuation corresponds to 120 per cent of the net sales of the business that is being sold and a multiple of 13.0 x EBITDA.

In a statement, Carrefour said that the decision to sell its operations in Thailand is part of its strategy to focus its resources on markets where it holds a leadership position and optimize its capital employed. Carrefour's growth prospects in Thailand did not allow the Group to envisage occupying a leading position in this market in the medium- or long-term.

Present in Thailand since 1996, Carrefour operates 42 stores including 34 hypermarkets (7 in full ownership).

Carrefour is the fifth-biggest player in organized food distribution in Thailand with a market share of 6 per cent, net sales of 723 million euro and EBITDA of 67 million euro over a twelve-month period to 30 June 2010.

Big C is the second hypermarket operator in Thailand, with a portfolio of 69 hypermarkets and net sales of 1.7 billion euro over a twelve-month period to June 2010.

-- The Nation 2010-11-15

[morejunk]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Edited November 15, 2010 by morejunk

[laurentbkk]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

This is Thailand here ,the farang community is small ,its normal to find Thai products ... in Europe you dont find so much Thai products in Carrefour France for example . For farang stuff there is still Villa market or Central chidlom . Carrefour was selling farang stuff in few outlets only ,rama4, lad phrao, the one in Rangsit doesnt have any farang product.

[el jefe]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Based on that logic it's a sound business decision for Carrefour. There obviously aren't enough farangs to support 42 stores. There are plenty of other options here in Chiang Mai. I rarely needed to go to Carrefour.

[steve187]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

I agree, this will reduce the choice of good quality foods aimed at the western customer

[morejunk]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

This is Thailand here ,the farang community is small ,its normal to find Thai products ... in Europe you dont find so much Thai products in Carrefour France for example . For farang stuff there is still Villa market or Central chidlom . Carrefour was selling farang stuff in few outlets only ,rama4, lad phrao, the one in Rangsit doesnt have any farang product.

You are more than welcome to shop in at Villa and pay a 50% premium. It wll be a loss to Pattaya to not have Carrefour. Enjoy your mama and fish sauce. There are many products that Carrefour now sells that are desireable and hard to find elsewhere.

Carrefour has meat, fish, bakery and frozen food sections that are beyond the imagination of Big Crap management. Looking for a large appliance like a tv or refrigerator? Not much at Big Crap.

Edited November 15, 2010 by morejunk

[webfact]

Carrefour says it sells Thailand outlets to Casino

PARIS, November 15, 2010 (AFP) - French retailer Carrefour said on Monday it would sell its 42 outlets in Thailand to rival Big C, part of the French Casino group, for 868 million euros (1.19 billion dollars).

The transaction should be completed by the first quarter of next year, Carrefour said in a statement.

Present in Thailand since 1996, Carrefour operates 42 shops including 34 hypermarkets and ranks fifth for food sales with a six percent market share.

-- (c) Copyright AFP 2010-11-15

[twix38]

What a great shame.

Big C aren't a patch on Carrefour for foreign customers. Let's watch the variety and quality go downhill.

[Pi Sek]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Your assumptions are fair (especially as you give your reasons), although pessimistic.

Remember, Big C is buying the business, not commercial real estate. That means, as well as getting the stores, they're also getting the business model, procedures, management, staff, stock, supplier contracts... the whole works. Just because Big C operates a certain way, it doesn't mean that what is now Carrefour will operate the same way under Big C control.

Also, you say that "business will drop because Big C doesn't have much of a clue about what farang customers want". I believe that the Big C business model values the business of 63m registered Thais, no matter how poor some of them are, over the hundreds of thousands of foreigners who are in the country at any one time. That's why they're #2 in Thailand. Carrefour is much further down the pecking order, maybe because they are more foreigner-orientated. "Groupe Casino in Thailand" might have acquired them because they want to branch into the farang market without compromising the Big C business model. I might be wrong though.

[Sydebolle]

Well, that means that the "Flammekueche" or "Tarte Flambée" will increase in price at the Ticino restaurant. The owner there told me that the Crème Fraîche needed for that dish is available at Carrefour only (apart from the stuff at Villa which is outdated and double in price). The French are difficult people but as far as food, wines and savoir vivre is concerned they definitely are the front runners (next to Italians and the Iberians).

Big C; the name says it all = Big Crap!

[Max4243]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

I think it is too quick to judge Big C on this takeover. I do hope there would be no big changes from what Carrefour has offered so far. As for catering for farang needs, I am sure if you feel Big C is lacking, there are many other Supermarket that do cater for farangs needs. Try Villa Mart at the new Paridise Mall. You can also find the Supermarket at Paragon and Emporium useful for farang shopping.

[madmitch]

Carrefour stores in the farang areas cater to a degree to the foreign market and Pi Sek may be correct and it is possible that certain farang foods may continue to be available; we don't know.

But if you've ever visited a Carrefour outside of Bangkok or a tourist area, you'll find that it's much more similar to Big C: no cheese counter, few Carrefour branded French imports etc.

We'll probably see some closures as places with a Big C and Carrefour in close proximity surely won't be able to support two Big C stores. The example that springs to mind to me is Chachoengsao, only because I spend a few weeks there every year. There must be more.

I'd have preferred a Tesco takeover personally, or a newcomer to the Thai market.

Anyone know about the stores in Singapore, Malaysia and Indonesia? Is that part of the deal?

[BKKBrit]

That is tragic. Baguettes, good breads, good imported meats, very competitive pricing and the shopping environment was bright and clean.

Villa is a shameful exercise in over-pricing, poor packaging and cramped store design all enhanced by spotty nose-picking cashiers

Tesco is something I never got used to.

But I guess there's still Foodland which has great meats and veg/fruit sections and the pricing is pretty danged good.

Big C won't see my custom. Dreadful shopping experience.

I wonder what will happen to all my Carrefour Wish Points? 55..can I trade them in and wish they'd stay?

[ronthai]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

At least in Pattaya we will still have Friendship Supermarket open until 02.30 everyday with good assortment of farang food. Great cheese selection, breads, meats fresh vegies and much more. Do most of my shopping there.

[Boghead]

I will now have to endure the incessant noise of "BIG SEE SPECIANNN" in my ears. Still not a bad as Tesco.

[powderpuff]

The TESCO thing was a non starter because the stores are too close together. example Onnut & Rama 4.

I find TESCO to be pretty much crap & CF Onnut is very handy to me. Hoping for few to no changes. They have a good selection of farang products. I go to TOPS VILLA & Foodland to get cheese & meat & stuff.

[prakhonchai nick]

Never previously heard Big C referred to as Big Crap. However my daughter calls it Big Khee. Same difference really!

[DP25]

Maybe it's different in Pattaya but the Big C near me is better than the Carrefour near me

[whybother]

Given that Big C is owned or part owned by a French company (Casino), wouldn't they be able to bring in the foreign items for the central Bangkok (and probably Pattaya) stores the same way that Carrefour has?

I've never been into a Big C, so I can't really compare them.

[henryalleman]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

I agree, this will reduce the choice of good quality foods aimed at the western customer

BigC is indeed crab, just like Tesco, I buy most of my European croceries at Tops. They even have a greater variety of Continental European products then Villa market and Foodland. Especcialy Rama3, Silom and Cheang Wattana branch.

[moetownblues]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Based on that logic it's a sound business decision for Carrefour. There obviously aren't enough farangs to support 42 stores. There are plenty of other options here in Chiang Mai. I rarely needed to go to Carrefour.

We use Carrefour a lot in Chiangmai and never go to Big C as it seems like crap with very poor quality produce and it is on the far outskirts of town. In Chiangmai if your searching for farang style produce Rim Ping supermarket is very good or try TOPS next to the Marriot hotel also very very good. These 2 stores are just like shopping in Australia.

[edgarfriendly]

TRAGIC? hardly...

8000 staff who know nothing more than to follow you around and look away when u ask for assistance...even in the native tongue.

all those stores are garbage merchants.

id rather bake my own bread and avoid the sufferation of all the tat!

kthxbye

ef

oh wow....foreign junk...woo etc

[WarpSpeed]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Yep, my sentiments exactly, though I don't use either very often options are good to have. My only hope is that they'll see the slightly more upmarket potential of remaining the status quo way as a compliment rather continue to the likes of the rest of the Big C chain..

[WarpSpeed]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

I agree, this will reduce the choice of good quality foods aimed at the western customer

BigC is indeed crab, just like Tesco, I buy most of my European croceries at Tops. They even have a greater variety of Continental European products then Villa market and Foodland. Especcialy Rama3, Silom and Cheang Wattana branch.

They do now because they recognized the niche market they were losing out on.. But it hasn't always been that way until they saw other markets such as Villa growing so well with the concept..

[SkyHigh]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

It already showed how good business was when they aimed upper buyers / farangs.

Go upscale Tops, paragon, villa market, foodland. They sell lots of western stuff.

[asiawatcher]

Never found a need to go to Carrefour as I have always had Tesco and never that keen on the French. Any extra goodies if the cravings take my fancy I get at Villa. But if Carrefour goes Big C then who cares - you will have a chain for middle class Thailand and a continuing expansion of the low-end rubbish complete with music so loud you would not want to shop there as a Farang anyway!

[swerver]

That's depresing news because Carrefour will soon become more Big Crap locations selling low quality junk with limited varieties of non Thai food products. My guess is that business will drop because Big C doesn't have much of a clue what the farang customers want. It will be a downward spiral from here for the Carrefour locations.

Your assumptions are fair (especially as you give your reasons), although pessimistic.

Remember, Big C is buying the business, not commercial real estate. That means, as well as getting the stores, they're also getting the business model, procedures, management, staff, stock, supplier contracts... the whole works. Just because Big C operates a certain way, it doesn't mean that what is now Carrefour will operate the same way under Big C control.

Also, you say that "business will drop because Big C doesn't have much of a clue about what farang customers want". I believe that the Big C business model values the business of 63m registered Thais, no matter how poor some of them are, over the hundreds of thousands of foreigners who are in the country at any one time. That's why they're #2 in Thailand. Carrefour is much further down the pecking order, maybe because they are more foreigner-orientated. "Groupe Casino in Thailand" might have acquired them because they want to branch into the farang market without compromising the Big C business model. I might be wrong though.

Never mind about all you people in other Carre Four locations, I do not patronize them, because I do not live there.

The Pattaya location is hard to beat. So much so that from experience it beats the Four Corner Store on the Hiway outside Paris, France.

Big C is a name taken from the first letter of the France investment company Casio Group. They are not grocers like Carre Four, they are investors. When push comes to shove they pull up strakes and charge the whole shebang off against their income tax which of course means as usual worldwide the working stiff pays the bill. Big C already has pulled up stake one time in Thailand, and for the buying public that is one time too often.

I had hopes Burly Junker would be the new owners, a Swiss company with over a hundred years experience in Thailand in the wholesale business of quality products and management. But no such luck.

Interesting the advice that Central Chitlom TOPS, for those not acquainted with the outskirts of BKK there also is, Central Bangna TOPS which equals the Chitlom TOPS store but both of them price wise are over the top of Carre Four Pattaya, in addition to a 250-km round trip to shop. There is also TOPS in Pattaya, compared to Chitlom and Bangna the company should be ashamed for it to sport the name TOPS. It is like Big C down Beach Road II from it, a junk store. It started fine but over time it has gone down the tube and now equals Big C. Maybe that is what Central management thinks, why have a nice store while a junk store down the road does just as well, no need to waste money on upkeep.

Surely the owners of FOODLAND Pattaya are rubbing their grubby fat fingers because it was through Carre Four down the road in Pattaya that they had to come down in their prices, so now the good old times are back on the horizon of driving up the prices, while Tesco will up the numbers on the prizing dartboard the one the staff throws darts at to set prices of products the proof of the pudding, seeing price variations of 50-60% from one week to the next.

Will end with TIT

[seadoo]

I don't know about the other Carefore in Thailand, but Pattaya has around 5-6 Farangs employed, I bet they are getting ready to pack and head home.

[frenchfarangjomtien]

So it means that some places will have 2 Big C in the future ?

[jpp2bkk]

It's a shame, Big C and Tesco are so boring