Carrefour in Norwegian JV
operations in South Korea and Japan. But it is also expanding
closer to home, today unveiling a tie up with Norway's Norges
Gruppen which will allow it to roll out its Champion format in the
Scandinavian country.
Most of the world's leading food retailers are looking to the emerging markets for growth, but France's Carrefour is also hoping to increase sales in a market a little closer to home.
The company, the world's second largest supermarket operator, yesterday signed two agreements with Norway's Norges Gruppen, covering franchises and supplies in the Norwegian market
The agreements will allow Carrefour to expand its Champion supermarket fascia in Norway as well as increase sales of its products through the Norwegian group's stores there.
Carrefour stressed that the agreements had entailed no change in either company's share structure - so it is not a takeover or a merger - but that they would allow both companies to expand operations in the Nordic market, where 2002 retail sales were worth more than €14 billion.
Under the terms of the first agreement, Norges' supermarket chain Meny-Ultra will be rebranded as Champion, with the first wave of banner changes coming early in 2004.
The second deal will see Carrefour supply a range of products to all of Norges Gruppen's 1,913 stores in Norway.
Perhaps conscious of the difficulties of entering new markets without a local partner following a troubled three-year period going it alone in Japan, Carrefour said the deal would allow it to take advantage of Norges Gruppen's expertise and knowledge of Norwegian consumers.
For its part, Norges Gruppen will benefit from access to Carrefour's expertise in running franchised operations.
Carrefour operates around 10,000 stores in 30 countries across four formats: hypermarket (Carrefour fascia), supermarket (Champion), hard discount (Dia, Proxi, ED) and convenience (Shopi, 8 à Huit). Its total sales in 2002 were €85 billion.
Norges Gruppen is the largest player in the Norwegian market with a market share of 34 per cent. Other key players market are Coop, Hakon Gruppen, ICA and Reitan Gruppen.
Norges Gruppen's revenues in 2002 totalled NK24.8 billion (€3bn). The company operates under a number of different fascias: Meny-Ultra (137 large supermarkets), Spar (smaller supermarkets), Kiwi (discount) and Joker (convenience).
