You have said you are happy with the first few days of sales. Could you tell us about the store — its size, what it stocks, and how it differs from your stores in other markets?
Lasfargues: The biggest difference from our stores in other markets is that there are categories we do not offer in Noida and possibly in future stores as well. These include meat, fish and alcohol, primarily because of licensing requirements and differences in customer habits.
For example, in France, Spain and Argentina, you will find meat, fish, alcohol and spirits in our stores.
The second major difference is the pricing system. India is, to my knowledge, the only market where the price is printed on the package as maximum retail price (MRP), and retailers then offer discounts on that. In other markets, prices are not printed, which gives us the flexibility to change prices every week or month.
The way the team at Apparel Group and the franchisee has managed this in India is impressive. There are strong promotions, with discounts of 30 per cent or 50 per cent against the MRP. The execution has been very good, and this is something quite specific to the Indian market.
What is the size of the Noida store?
Lasfargues: The store is spread over 50,000 square ft. It has around 15,000 stock-keeping units and employs more than 180 people, in addition to about 60 promoters.
You are following a cluster-based model for expansion. What can we expect in terms of new stores by the end of this year, and what is your immediate expansion plan for the next three years?
Lasfargues: The only figure we have communicated to the market is our plan to have around 50 stores in the next three years.
The next store will be a supermarket — of around 1,000 square metres. We also have plans for more stores in Noida.
We are working on a cluster-based approach, but we will have different formats, depending on the market and location. These could range from compact hypermarkets, like the one in Noida, to supermarkets, gourmet stores and express stores.
Would you look at buying out retail chains to expand in India?
Lasfargues: The “make or buy” strategy is essentially about two routes to expansion.
The “make” option is to open stores one by one: Identify a location, build the team and bring in the products. The “buy” option is to pursue mergers and acquisitions.
In a market such as India, we may find food-retail networks that are interested in selling their businesses. There could be several reasons for this — for example, a company may be struggling to maintain market share, or the owners may want to sell the business for personal or family reasons.
In such cases, we would evaluate the company, its locations, its value and the potential synergies. We would also assess how we could improve the top line and margins if the acquisition were undertaken by the group.
This is the “make or buy” strategy we are pursuing.
What gives you the confidence to re-enter the Indian market for the second time?
Lasfargues: We are confident. I become more confident every day.
What happened 12 years ago was different. At that time, we were operating only in the cash-and-carry business-to-business segment through a direct investment from the group. We eventually decided to withdraw from the Indian market because of a strategic decision at group level.
However, we have adopted a franchise-development model for international markets, and India had to be part of our road map. We began looking for the right partner and, around two years ago, decided to sign with Apparel Group to develop the business-to-consumer hypermarket and supermarket business in India.
The model today is fundamentally different from what we were doing 12 years ago.
The second important factor is the changing economic context in India and the reforms undertaken by the government. These reforms have contributed to improving purchasing power and economic growth. The macroeconomic situation in India today is different from what it was 12 years ago.
That is why we believe it makes sense to start with physical stores and, in the future, build ecommerce and quick-commerce capabilities on top of those physical stores.
By when will ecommerce and quick commerce start?
Ved: We see the future of retail as omnichannel. Physical stores will remain central to the Carrefour experience, while Indian consumers increasingly expect convenience across channels. Our long-term plan includes an integrated omnichannel ecosystem. Digital capabilities will be introduced in a phased manner based on consumer needs and sustainable economics.
Are you looking at exports from the Indian markets?
Ved: India has exceptional capabilities in agriculture, food production and manufacturing. As we develop our sourcing ecosystem here, we see potential over time for Indian suppliers and Indian-made products to access opportunities beyond the domestic market through Carrefour’s international network. This is something we are interested in developing as the business matures.
What kind of investment are you doing? You have plans for 50 stores in three years and are also looking at opportunities in merger & acquisition (M&A). How much investment have you committed for the Indian market?
Lasfargues: So far, we have not communicated the amount of financial investment or the capital expenditure required for the stores. Nor have we disclosed any potential M&A investment.
However, if there are opportunities to open more stores or pursue acquisitions, the group has the financial capability to fund the expansion.
At this stage, we are not communicating the investment amount or the financial performance figures from the first day of operations.
What are your revenue expectations?
Ved: As a privately held organisation, we do not disclose specific capital figures. Our financial and operational commitment is substantial and long-term. Our investment extends well beyond real estate to include supply-chain technology, cold-chain infrastructure, local sourcing networks, and human capital across the country.