Carrefour advances pawns into Taiwan
2020 is a year of international expansion for the giant Carrefour (turnover of €80.7 billion in 2019). After the acquisition of 30 Makro Atacadista cash & carry stores in Brazil in February, the business is expanding their network in Taiwan. The food retailer is buying the local grocery chain Wellcome Taiwan (turnover of €390 million in 2019) from Dairy Farm (turnover of €24.8 billion in 2019). For €97 million, Carrefour is acquiring 224 small local stores (an average 420 sq.m of sales area) and plans to convert Wellcome convenience stores to a Market banner.
The Jasons stores (an average 820 sq.m of sales area), are part of the transaction and will be re-branded as Carrefour. The transaction is due to complete by the end of 2020 after competitive review by the Fair-Trade Commission (F.T.C.). In Taiwan, Carrefour already operates 137 stores, including 69 Market, with €2 billion in sales last year and recurring operating income of €83 million. This purchase will make the French company the 2nd largest retailer in the country. Carrefour is now back on top in Asia, after selling 80% of the Chinese business (210 hypermarkets and 24 convenience stores) to the non-food retailer Suning.com. This acquisition in Taiwan enables Carrefour to return to Asia with a smaller format, more adapted to local consumption patterns. At the same time, it is focusing on delivery and e-commerce.