Carrefour, the world’s second largest grocery retailer, is seeking to enter the Israeli market through an investment in the Victory supermarket chain, according to a report in Bloomberg.
Talks about a potential investment, which were reportedly confirmed by the Israeli firm following media speculation, come as Victory itself is planning to submit a bid for Alon Blue Square’s troubled Mega Supermarket chain in order to strengthen its presence in the near $9 billion Israeli retail market. Israel’s second-largest grocery chain Rami Levy Chain Stores Hashikma Marketing 2006 has also said it would look t0 submit a bid for Mega, Bloomberg reports.
The reported move by Carrefour comes as France’s largest retailer reported strong performance over the 2015 financial year, with sales rising 3.0% on an organic basis to €76.9 billion ($85.6 billion). The company reported “faster growth in Europe, notably in Spain and Italy” while it also touted an “excellent performance in Latin America in a more difficult environment”. Growth in recurring operating income rose 7.0% to €2.445 billion ($2.72 billion) at constant exchange rates, with Carrefour saying that all countries in Europe, including France, had posted an increase in their operating margin.
Source: Bloomberg / Carrefour