French retailer Carrefour will shut down its two stores in Singapore before the year is up.
The company says its two large stores at Suntec City and Plaza Singapura and its growth opportunities in the city state are insufficient to allow the company to reach a leadership position in the medium or long term.
The closure of the two stores will affect around 390 jobs. The company said it plans to coordinate with local retailers for the redeployment of the affected staff.
Another hypermarket operator, Hong Kong’s Dairy Farm International, which owns the Giant brand, is reportedly going to take over the Suntec site and may also replace Carrefour at Plaza Singapura.
Carrefour, which entered Singapore in 1997, flagged its intention to exit Singapore, Malaysia and Thailand in 2010. In November of that year it sold its 42 Thai stores to rival French operator Group Casino, which owns the Big C operation in southeast Asia.
It later shelved plans to sell its operations in Singapore and Malaysia after receiving insufficient bids, saying the two countries would be a significant contributors to the business.
Carrefour, which reported in March a profit drop of 14.3 per cent to €371 million (US$466 million), had also withdrawn from Greece, where it had about 300 stores.
GB
