Abstract

The case examines the entry and exit strategies of French retailer Carrefour in the Russian market. The company opened its first store in Russia in June 2009, after spending over two years in studying the country’s retail markets. However, within four months, in October 2009, it announced its exit from the market, citing lack of growth and acquisition opportunities. The case discusses Carrefour’s entry into Russia, its failed acquisition attempts and the factors that forced it to make a quick exit from the country. It also examines the business environment in the Russian retailing industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the nature of problems faced by retailers like Carrefour in emerging markets.
• Study and analyze the entry strategies of Carrefour in Russian retail markets.
• Examine the reasons that prompted Carrefour to exit Russia in a short period.
• Analyze the retail industry in Russia.

Keywords

Carrefour SA, Organic Growth, Acquisition Opportunities, Bureaucracy, Return on Investment, 1998 Financial Crisis, Russian Retail Market, Store Formats, Auchan SA, Metro AG, Seventh Continent, Strategic Priorities, Filion Shopping Mall, Service Standards, Entry and Exit Strategies, Expansion Strategies, Deflationary Environment, Complicated Legislative Framework, Bureaucracy, Global Financial Crisis, Macroeconomic Environment, Retail Trade Law in Russia