French retail giant Carrefour is not in danger of becoming a retail monopoly in China, industry analysts have said, countering accusations by local media.
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Carrefour’s aggressive expansion in China has seen it set up around 40 outlets since its entry in the mid-1990s. The company was recently accused by some mainland media of being a retail monopoly, following a dispute between Carrefour and some local roasted seed suppliers, reported AFX-Asia.
In July, some roasted seed and nut suppliers resumed shipments to Carrefour’s Shanghai stores after individual negotiations resolved a dispute over fees imposed by the retailer. Carrefour had been accused of imposing “unreasonable” charges on local vendors, which resulted in losses for some suppliers.
Liu Jeijiao, a research fellow with the Chinese Academy of Social Science, said it was unfair to label Carrefour as a monopoly, because there were other retailers in the market.
“Local vendors have plenty of other choices to turn to, such as Wal-Mart, Metro and Lianhua, if they think Carrefour’s fees are too high,” Liu was quoted by AFX News as saying.
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