Carrefour is acquiring Dairy Farm’s Wellcome Taiwan in a deal worth €97m (US$108.2m), subject to regulatory approval.
Acquiring over 220 stores
The acquisition includes approx. 224 grocery stores (Wellcome and Jasons), along with some property assets. The deal is expected to close by end-2020. IKEA Taiwan, however, will remain under Dairy Farm.
The Wellcome banner stores (199) will be converted to the Carrefour market format, and those trading under the Jasons brand converted to Carrefour. Wellcome stores have an average sales area of 420 sq m, while Jasons (25 stores) trades at about 820 sq m. The deal is expected to close by end-2020.
Carrefour strengthening its position in Taiwan
Carrefour continues to perform strongly in Taiwan. The deal, should it be approved by the authorities, will help Carrefour close the gap to local supermarket operator PX Mart, strengthening its position as the third largest retailer in the market after 7-Eleven and PX Mart.
Carrefour currently operates 137 stores in Taiwan, including 69 stores under the market banner. Last year, it posted net sales in the country of €1,968m (US$2,199m). While Wellcome Taiwan achieved net sales of approx. €390m (US$436m) in 2019. In recent years, Carrefour has quickly expanded its market format, a 24 hours compact supermarket format that carries a strong selection of fresh products. The acquisition will help accelerate store expansion progress. Wellcome Taiwan will help drive development in ecommerce and bring expertise in fresh produce. Each store will become a new pick-up point for ecommerce orders.
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