MOSCOW, October 19 (RIA Novosti) - French retailer Carrefour, which announced plans last week to pull out of the Russian market, said on Monday it would still keep its hypermarket chain in Russia.
Carrefour, the world's second largest retailer, said its two hypermarkets, opened earlier this year in Moscow and the southern Russian city of Krasnodar, would continue to operate under its brand until its business is sold, and the company would go ahead as planned with the opening of a third hypermarket, in the western Russia city of Lipetsk.
Analysts say Carrefour's decision to keep retail operations going until a sale goes through could be attributed to the company's desire to cut the costs of its exit from Russia, as it could face penalties for severing contracts with landlords and suppliers just months after signing them.
Paris-based Carrefour announced its decision to sell all its activities in Russia on October 15, just four months after it opened its first hypermarket in Moscow. The company explained its decision by declining sales and a lack of growth opportunities in Russia.
"Carrefour has decided to sell its activities in Russia and pull out of the market, given the absence of sufficient organic-growth prospects and acquisition opportunities in the short-and medium-term that would have allowed Carrefour to attain a position of leadership," a statement said.
"This decision is consistent with the group's strategy which aims at building leadership positions that will ensure strong and lasting profitable growth," the statement continued.
