Carrefour has too much on its plate to think about a move into the US market now, say analysts responding to reports that the French retail giant is eyeing US chains Target and K-Mart.
"I'd be amazed if they went in," said one analyst. "They have far too much to worry about integrating Promodès for a start. On top of that K-Mart is not a very attractive buy."
However, Michelle Wolff at Merrill Lynch said Target could turn out to be the perfect buy for Carrefour.
"If Carrefour plans to enter the US market, it will probably make a move within two or three years," she said
With almost 1,000 stores across 45 states, Target has the scale and the size of stores Carrefour requires to make an impact, Wolff said.
Although a supermarket operator might be more likely to sell, Carrefour's management is keen to expand in the supercenter area, she added.
Referring to Carrefour's abortive attempts to enter the US market in the past, Retail Intelligence analyst Richard Perks wondered whether Carrefour would risk getting "another bloody nose".
Other analysts stressed there were plenty of opportunities in the US but doubted Carrefour would go in yet, given its disappointing recent performance at home and in Spain and the continued efforts to integrate Promodès.
At a recent food retail conference hosted by Salomon Schroder Smith Barney, Carrefour said it was focusing on expanding its presence in the Far East and stepping up its hard discount operations in Brazil.
A Carrefour spokesman denied it had approached either company, and declined to comment on its interest in the US market in general.
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