Hypermarkets under pressure as discounters and private labels reshape the industry Stock under scrutiny: Carrefour hovers near a year-low, awaits returns from Brazil and France Limited impact on French economy, but Carrefour's reputation at stake The Middle East retail landscape has undergone one of its most significant shifts in recent years, following Majid Al Futtaim's decision to discontinue the French Carrefour brand in four key markets — Jordan, Oman, Bahrain, and Kuwait — and replace it with its homegrown banner, HyperMax. The transition began with the closure of Carrefour outlets in Jordan in November 2024, followed by Oman in January 2025, Bahrain on 14 September, and Kuwait on 16 September 2025. Far from isolated moves, the closures reflected a mix of political and economic pressures alongside the group's ambition to forge closer ties with local consumers through a brand more closely aligned with Arab identity. Despite these exits, Carrefour has not vanished from the region. The banner remains active in core markets such as the UAE – where Majid Al Futtaim holds exclusive rights through 2031 – in Saudi Arabia, where seasonal stores operated during the 2025 Hajj, and in Egypt, where a new branch opened in Suez in August 2025. That pattern suggests a strategic repositioning rather than a wholesale withdrawal, giving the local partner greater flexibility and relief from the constraints of an international franchise. Globally, the financial impact on Carrefour SA is limited. The group operates more than 15,000 stores worldwide, serving around 80 million customers a year and reported net sales of €85.4 billion in 2024. Approximately 81 per cent of that total is concentrated in three markets — France, Spain, and Brazil — which act as the principal engines of earnings and share performance. Regions run by franchise partners, such as the Middle East, Africa, and parts of Asia, contribute mainly through franchise fees, which totalled €463 million in 2024, under 1 per cent of group sales. Accordingly, the rebranding in selected Majid Al Futtaim markets likely results in losses in the tens of millions of euros, but does not threaten Carrefour's core fundamentals. The HyperMax story nevertheless illuminates broader dynamics in global grocery. Political sensitivities and consumer boycotts linked to Carrefour's global footprint played a part, but were not decisive on their own. Majid Al Futtaim's financial disclosures show that its retail arm suffered a 9 per cent like-for-like sales decline in 2024 amid net store closures, prompting a search for leaner, more agile formats. The new banner, pitched as an Arab brand, can deliver cost savings, political insulation, and closer ties with local suppliers — aligning with the global shift towards discount formats and private labels that have been gaining share in Europe and elsewhere. Investors, meanwhile, have kept a wary eye on the stock. Carrefour trades at about €12 in Paris, close to its 52-week low of €11.58 and well off its high of €16. Technical indicators point to weak momentum, with the relative strength index around 39 and resistance clustering near €12.6–12.9, while €11.58 stands as a critical support level. A sustained move above resistance could improve sentiment; a breach of support would risk a new downward leg. Near-term catalysts remain the group's planned takeover of its Brazilian unit, its ability to defend market share in France after integrating the Cora and Match chains, as well as any further developments around Middle Eastern franchise markets. For the French economy, the direct impact is negligible. Overseas franchise fees represent a marginal slice of group revenue compared with the sales base in France, Europe, and Latin America. Indirect effects are primarily reputational and political, with possible limited influence on consumer sentiment. The more tangible consequences for employment and investment are tied to Carrefour's domestic restructuring — franchising, automation, and network consolidation — rather than developments in far-flung markets. Ultimately, Carrefour's Middle East story shows that store closures or rebranding need not signal retreat but rather a calculated repositioning shaped by political sensitivities and market realities. HyperMax marks Majid Al Futtaim's push for a more agile local identity, while Carrefour concentrates on its core markets in Europe and Latin America. Despite the symbolic and political resonance, the financial impact on the parent company remains marginal, with France and Brazil standing as the decisive arenas for its future performance.
