Carrefour will shut its Indian operations and close its wholesale stores in the country as the French retail giant pulls out of underperforming markets to focus on reviving flagging sales at home.
The world's No.2 retailer by sales, which has been operating in India since 2010, will shut its five Indian wholesale stores by the end of September, according to a company statement late on Monday.
Carrefour has been in talks with Indian retail companies and strategic investors about its Indian assets in recent months. It has invested about 3 billion rupees ($50.17 million) in its India operations, retail consultants say.
Carrefour is in advanced talks with a buyer to sell its India assets, a source with direct knowledge of the matter said on Tuesday, declining to be identified as he is not authorised to speak to the media.
"Talks haven't failed. The buyer is in the process of carrying out a final round of due diligence," the source said, without giving further details.
A Carrefour spokesperson declined to comment on the talks.
The Indian government opened up the country's $500 billion retail sector to foreign supermarket operators in 2012, but mandatory local sourcing requirements and a decision to let individual Indian states decide whether to allow global chains have deterred new entrants.