What's happened
Carrefour, once a leading hypermarket chain, is rapidly retreating from several Middle Eastern markets, including Bahrain, Kuwait, Jordan, and Oman, with its franchise partner Majid Al Futtaim replacing it with the local brand HyperMax. The closures follow regional political pressures and strategic shifts, while Carrefour continues to operate in some markets like the UAE and Egypt.
What's behind the headline?
Carrefour's rapid withdrawal from key Middle Eastern markets signals a strategic pivot by Majid Al Futtaim to strengthen regional control and align with local economic strategies. The replacement of Carrefour with HyperMax, a homegrown brand emphasizing local sourcing, indicates a shift towards regional nationalism and food security, especially in Bahrain and Kuwait. The closures are also influenced by political pressures, notably the boycott campaigns linked to Carrefour’s Israeli partnerships, which have gained traction amid ongoing regional conflicts. This retreat underscores the risks multinational brands face in politically sensitive markets, where consumer activism can swiftly impact operations. Moving forward, Carrefour’s global brand may become increasingly confined to markets with less political volatility, while HyperMax’s success will depend on its ability to build loyalty and supply chain resilience in a competitive regional landscape. The story exemplifies how geopolitical tensions directly influence retail strategies and market presence in the Middle East.
What the papers say
The articles from Gulf News, authored by Justin Varghese, provide detailed insights into Carrefour’s regional retreat, highlighting the strategic shift to HyperMax and regional political pressures. The New Arab adds context on the influence of the BDS movement and regional activism, emphasizing the political risks Carrefour faces due to its Israeli partnerships. Both sources agree on the regional pattern of closures and the strategic pivot, but Gulf News offers a more comprehensive view of the corporate restructuring and future plans, while The New Arab focuses on the political activism aspect. This contrast illustrates how regional politics and corporate strategy are intertwined in shaping Carrefour’s presence in the Middle East.
How we got here
Carrefour entered the Middle East in 1995 through a franchise agreement with Majid Al Futtaim, which has operated its stores across 12 markets. Over recent years, Carrefour has faced declining sales and store closures in several countries, driven by regional political tensions, consumer boycotts linked to Israel, and strategic shifts by its franchise partner to develop local brands like HyperMax. The company’s retreat from markets such as Jordan, Oman, Bahrain, and Kuwait reflects broader regional trends and internal corporate restructuring.
Go deeper
More on these topics
-
Carrefour Group, S.A. (French: Groupe Carrefour, [kaʁfuʁ] ), is a French multinational retail and wholesaling corporation headquartered in Massy, France. It operates a chain of hypermarkets, grocery stores and convenience stores. By 2024, the group had.
-
Bahrain, officially the Kingdom of Bahrain, is a sovereign state in the Persian Gulf. The island nation comprises a small archipelago made up of 40 natural islands and an additional 51 artificial islands, centered around Bahrain Island which makes up arou
-
Majid Al Futtaim (1934 – 17 December 2021) was an Emirati billionaire businessman, and
the founder and owner of the Majid Al Futtaim Group, an Emirati real estate and retail conglomerate, with projects in Asia and Africa.
-
Oman, officially the Sultanate of Oman, is a country on the southeastern coast of the Arabian Peninsula in Western Asia. Located in a strategically important position at the mouth of the Persian Gulf, the country shares land borders with the United Arab E
-
Jordan, officially the Hashemite Kingdom of Jordan, is an Arab country in Western Asia, on the East Bank of the Jordan River. Jordan is bordered by Saudi Arabia to the south and the east, Iraq to the north-east, Syria to the north and Israel and Palestine
-
Kuwait, officially the State of Kuwait, is a country in Western Asia. Situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, it borders Iraq to the north and Saudi Arabia to the south.