Carrefour closed two stores in China last year, which marked the first time the French retailing giant has ever shut down part of its business in China since it entered the world's most populous market in 1995.
Carrefour closed two stores in China last year, which marked the first time the French retailing giant has ever shut down part of its business in China since it entered the world's most populous market in 1995. The regional shrinkage represents Carrefour's challenge of maintaining profits in China, and has caused a crisis of confidence, Xinhua reported.
Carrefour's huge profits in China are due to its advantageous business model that's helped the retail chain grow. But complacence and negligence kicked in. Along with its drastic expansion nationwide, Carrefour started to be associated with scandals such as selling fake and expired goods, and bribing local government officials. Carrefour offered various excuses and attributed the faults to individuals, but that failed to appease Chinese customers and improve its corporate image.
