Carrefour enlists Tencent's support for its China hypermarkets

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The chain plans to receive 33% of its own branded product sales and triple its organic food revenue to 5 billion Dollars by 2022.

The group is also aiming to open at least 2,000 new neighborhood outlets in France in the coming years.

Chinese internet service provider Tencent and supermarket operator Yonghui are to invest in Carrefour China in a move analysts say will help revive the struggling French retailer's mainland China business, according to Inside Retail Asia.

"We must revamp our model by simplifying our organization, opening ourselves up to partnerships, improving our operational efficiency", said Alexandre Bompard, Carrefour's chief executive.

Tencent will further develop the retail services offered on its social platforms and promote the use of WeChat, WeChat Pay, cloud computing and other services within the Carrefour ecosystem.

The company said some of the stores "are experiencing great difficulties because they have not adapted to their catchment area since their conversion to Carrefour banners".

Carrefour is investing €2.8bn in digital developments and has agreed to form an alliance with Tencent Holdings that could see the Chinese tech firm buy a stake in the French retailer.

"Our ways of consuming are changing: Quality, safety and where food comes from have become key concerns for our customers". Publicis.Sapient has been tapped to assist the brand in its e-commerce challenges and deploy an omni-channel system of reference for its customers.

Carrefour shares rose more than seven percent following the announcement. "To deeply support the extensive strategic and digital transformation of an worldwide player of this stature is a challenge that the know-how of Publicis.Sapient is prepared to meet", Arthur Sadoun, chairman and CEO, Publicis Groupe, said. Carrefour plans to sell 273 supermarkets and reduce the size of its major hypermarkets in France.

The world's second largest retailer behind Walmart, said it will begin the French job reduction process through a voluntary redundancy plan.

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