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Carrefour Exits Retail Scene in Guangzhou

August 31, 2023

On Aug. 25, a Carrefour store located in Guangzhou’s Tianhe District posted a closure notice, citing business adjustments as the reason for ceasing operations starting from Aug. 26.

This store was Carrefour’s last remaining establishment in Guangzhou. Staff at the Paso Plaza, where the store is located, have confirmed that the branch has remained shuttered for several days in a row, leaving uncertainty regarding its potential resumption of operations in the future.

In recent years, Carrefour stores throughout China have been associated with various negative reports, including incidents involving shopping card redemptions, product shortages, and cash flow and supply chain issues. This year, Carrefour has successively shut down stores in multiple cities, such as Wuxi, Shanghai, Suzhou and Haikou. At present, there are no operational Carrefour stores in either Guangzhou or Shenzhen. In Beijing, the retail giant has already shuttered 10 stores, leaving only two with scarcely stocked shelves and restricted daily operating hours.

According to the semi-annual financial projection released earlier this year by parent company Suning.com, Carrefour China was anticipated to incur a net loss ranging from 950 million to 1.1 billion Chinese yuan ($130 million to $151 million) during the initial half of this year. This expected loss stems from one-time compensation expenditures related to the closure of stores in China, as well as the resulting impact on the company’s reputation and the impairment of long-term assets.

Image: Pixabay

This article was translated from Chinese. Read the original article.

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