While the rest of Europe’s large retailers are scrambling to drop their reliance on struggling European economies and looking to the East to offset losses in the west, French retailer Carrefour SA (EPA:CA) is considering its options for increasing its focus on its home market by retreating from markets where it’s not a dominant player.
It will be looking to sell its China operations, possibly through a merger with a local company or a Hong Kong IPO that could raise as much as $1 billion for the hypermarket chain, according to a report in Monday’s Wall St. Journal, citing “people familiar with the matter.”
Carrefour has substantial operations in China, but it isn’t a major retailer there. It does lead in Taiwan, but the market is relatively small. Meanwhile, about 45 percent of the company’s revenue comes from France. The company has already retreated from South Korea and Indonesia, unable to get significant footholds in those countries. It sold its Japan and Malaysia operations in 2005 and 2011, respectively, to Japanese retailer Aeon Co. (TYO:8267).