Carrefour’s entry into India to spark UAE-style retail race with Lulu

NEW DELHI: French retail giant Carrefour’s plan to establish hypermarkets, supermarkets, and gourmet stores across India,  is set to replicate a retail race that is well familiar to the UAE, with Lulu Group that has been fast establishing in India’s retail space for more than a decade now.

Lulu is already a dominant player in India’s hypermarket space, especially in Kerala.

Carrefour vs Lulu

Though Carrefour and Lulu entered the UAE market around the same time, the journeys of their management teams reflect distinctly different business legacies. Carrefour was introduced in 1995 by Majid Al Futtaim, a leading UAE conglomerate with diverse interests across the Middle East.

Majid Al Futtaim now holds exclusive rights to operate Carrefour in 15 countries across the Middle East, Africa, and Asia, emphasizing its commitment to local identity with its signature “M” logo.

In contrast, Lulu, under the leadership of MA Yusuffali, also entered the UAE market in 1995 with its first supermarket in Abu Dhabi. What began as an experimental venture, but one backed by Yusuffali’s quiet confidence, quickly transformed into a retail giant.

By 2000, Lulu transformned into a different format and solidified its presence over time. Currently, the Lulu Group operates 175 outlets in the UAE and 259 across the GCC.

It’s Carrefour’s re-entry

French retail giant Carrefour is gearing up to re-enter the Indian market, this time through a strategic partnership with Dubai-based Apparel Group, marking a significant move in the country’s  dynamic retail landscape.

The Carrefour Group is a multinational retail and wholesaling corporation that operates more than 14,000 stores in about 40 countries. Carrefour’s store network includes hypermarkets, supermarkets, convenience stores, and employs about 3,40,000 people.

Carrefour’s renewed entry into India comes after its 2014 exit, driven by restrictions on foreign direct investment (FDI) in multi-brand retail. However, with this new partnership, Carrefour aims to rapidly expand, positioning India as a key pillar in its global growth strategy.

The company first entered India in 2010 through the wholesale cash and carry format, for which foreign direct investment (FDI) rules are more lenient, allowing overseas companies to invest directly in India’s retail market.

Ground set for competition

Talking to businessbenchmark.news, a retail expert noted, “The arrival of Carrefour adds a new competitive edge to India’s retail scene, particularly for Lulu Group, which has been steadily expanding its presence across the country.”

With both giants known for their large-format stores and diverse product offerings, consumers will likely benefit from an intense competition focused on pricing, product variety, and the shopping experience.

While Carrefour plans to introduce its exclusive brands starting in North India, Lulu’s established presence in regions like Kerala and expanding foothold in other metros may spark a competitive race.

Lulu’s India presence

Lulu, at present, has malls in six Indian cities — Bengaluru, Coimbatore, Hyderabad, Kochi, Lucknow, and Thiruvananthapuram.While the one in Hyderabad was inaugurated last year, the group has unveiled plans for $480 million mall in Ahmedabad, which could potentially create 3,000 jobs

Both retailers are keen to tap into India’s fast-growing consumer base, and Carrefour’s move signals the start of what could be a retail showdown for market share.

As the countdown begins for Carrefour’s 2025 launch, India is set to witness an exciting rivalry between two international retail giants, each vying for dominance in one of the world’s fastest-growing economies.