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Retail giant Carrefour planning major expansion drive in Malaysia: report
25.09.2005
Agence France-Presse
French supermarket giant Carrefour is on an expansion drive in Malaysia,
planning to boost its presence from eight stores currently to as many as 22
outlets by 2008, a report said Monday.
Carrefour Malaysia managing director Patrice Rincheval told the New Straits
Times that the retailer was moving away from its past practice of setting up
stores within shopping complexes, which had slowed down its expansion.
"We have to work on expansion. If we have to, we will build stand-alone
stores. We will purchase land too if we have to because we have to grow fast
to achieve better economies of scale," he told the daily.
"Carrefour is looking forward to opening four to six new outlets in 2006
and four outlets annually thereafter," he said, adding that the plans
were subject to regulatory approval.
Carrefour's operations here are 30 percent owned by Malaysia's Syarikat Pesaka
Antah.
British retail giant Tesco also said last month that it plans to expand
substantially in Malaysia, opening 20 more stores within the next five years.
"We are going to open as many as allowed," Tesco Stores Malaysia
chief executive officer James Caan said at the time.
Tesco Malaysia, which is 70 percent owned by Tesco in a joint venture with
Malaysian conglomerate Sime Darby, already has 10 outlets here.
Malaysia has restricted the entry and expansion of hypermarkets in the country
in recent years to protect smaller local businesses, forcing foreign retailers
to devise new strategies to enable them to expand.
sls/bmm
Malaysia-France-retail-Carrefour
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