Carrefour have agreed a partnership with French industrial goods distributor CFAO to develop various store formats in eight African countries.
The joint venture will be owned 55% by CFAO and 45% by Carrefour and will see the development of multi-format stores in eight African markets, including Cameroon, Congo, Côte d'Ivoire, the Democratic Republic of the Congo, Gabon, Ghana, Nigeria and Senegal. Carrefour does not currently have a presence in the eight countries, with its African presence currently limited to Tunisia (51 stores), Morocco (45 stores) and Egypt (15 stores), all through franchise.
According to the retailer, 'As the world’s second-largest retailer with a presence in over 30 countries, Carrefour will contribute its expertise as a multi-format retailer as well as the strength of its banner. CFAO, with its longstanding local presence in Africa, will bring its thorough knowledge of these markets and a deep understanding of consumer habits to the venture'.
Commenting on the venture, CFAO said,"The partnership with Carrefour and the shopping center construction project in eight West and Central African countries fits in perfectly with the Group's strategy of bolstering its consumer goods business in Africa. Over the coming years, CFAO intends to become a leading player in this sector as it has in the automotive and pharmaceutical businesses. This project will create value over time for the Group's shareholders."
The first unit to be constructed under the joint venture, a hypermarket, is expected to open in Côte d'Ivoire's largest city, Abidjan by 2015, with dozens more to follow, according to CFAO. The agency said, 'In the next ten years, the Group is aiming to develop dozens of shopping centers and become the leading retail player in these African regions with revenue of over €1 billion'.
Last week, CFAO announced an agreement with Pernod Ricard which will give the agency exclusive distribution rights for spirits in Nigeria, a country where consumption of alcohol is rising rapidly.
CFAO is present in 37 countries, 32 of which are in Africa, where it distributes equipment, produces and distributes consumer goods and is a provider of a number of technology-related services. In 2012, CFAO generated consolidated revenue of €3.58 billion and recorded recurring operating income of €290.3 million.
