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Carrefour Brasil to open new stores, considering acquisitions and partnerships

The Brazilian unit of French hypermarket operator Carrefour SA intends to expand its network in Brazil by opening stores or entering partnerships, Reuters reported March 13, citing executives on the company's annual investors day in São Paulo.

According to the executives, Carrefour Brasil plans to open 20 wholesale stores, 10 Carrefour Market stores and 20 Carrefour Express convenience stores in 2018, the report said. The retailer also intends to convert five to seven hypermarkets into wholesale stores within the year, making it possible to establish 120 to 140 new stores by 2022.

However, aside from opening stores, Carrefour executives told journalists that they are also considering options such as franchising partnerships and possible acquisitions. When CEO Noel Prioux was asked about Walmart Inc.'s Brazil unit being up for auction, he reportedly said that he needed "more clarity" about the structure of the sale process. Prioux said the company has identified potential partnerships and is "open to everything."

Walmart is in talks with Advent International Corp., GP Investments Ltd. and ACON Investments LLC to sell a major stake in its Brazilian business. The local unit owes approximately $3 billion in back taxes to various state governments.

Reuters noted, citing two sources familiar with the matter, that Carrefour was approached about a possible deal by Goldman Sachs & Co., but the French company was not interested.

Executives reportedly added that Carrefour Brasil also wants to expand its e-commerce and digital footprint. According to the unit's financial division head, Paula Cardoso, Carrefour Brasil by 2018-end plans to offer customers the option to buy products online and pick them up at a Carrefour store. She added that the company is in talks with 95 vendors that want to sell on Carrefour Brasil's online platform, which will make more than 120 product categories available to customers.

The expansion initiatives reportedly aim to best local rival Companhia Brasileira de Distribuição, commonly known as GPA, which is a subsidiary of French food retailer Casino Guichard-Perrachon SA.