Carrefour Ends Oman Business Two Months Post Jordan Exit

Carrefour, the French retail giant, has pulled out of Oman after its recent exit from Jordan. This sudden move ends the company’s strong presence in two Middle Eastern markets within a brief period.

The retailer ran several hypermarkets in Oman’s major cities and served thousands of customers each day. This decision affects hundreds of employees and the company’s entire store network in the country. The strategic move has changed the retail scene in the region and raises questions about how other international retail chains will fare in the Middle Eastern market.

Regional Retail Transformation

The retail world in the Middle East continues to evolve as Majid Al Futtaim (MAF) makes major changes to its market operations. The company launched its new retail brand Hypermax to take over Carrefour operations in several locations.

MAF started this transformation in Jordan by suspending Carrefour operations on November 4, 2024. The company then launched Hypermax stores across all 34 locations in Jordan. The transition in Oman has covered key locations including:

• City Center Muscat
• City Center Qurm
• Mall of Oman
• Muscat Grand Mall
• Oasis Mall

This regional transformation aligns with MAF’s core business strategy. The company’s journey began when it opened the region’s first Carrefour hypermarket at Dubai’s City Center Deira in 1995. By 2020, MAF had grown to manage more than 320 Carrefour outlets in 16 countries. The new Hypermax brand focuses on local products and community employment to meet neighborhood needs better.

MAF’s strategic decisions have brought visible changes to store operations. Observers in Oman have watched Carrefour signs come down across Muscat outlets, replaced by fresh Hypermax branding. This move represents a key development in the company’s regional retail approach as it adapts to market needs.

Business and Economic Impact

Majid Al Futtaim’s retail division has seen the most important financial changes lately. Their H1 2023 performance shows:

• Revenue increase of 5% to AED 18.9 billion
• EBITDA growth of 13% reaching AED 2.1 billion
• Net profit surge of 74% to AED 1.7 billion

The retail sector struggled as revenue dropped by 2% to AED 14.1 billion. The company’s online business proved resilient and grew 13% to reach AED 1.2 billion in revenue.

Market conditions have hit regional operations hard. Jordan made up 3.3% of MAF’s total revenues in 2023. This places it sixth in importance after UAE, Saudi Arabia, Egypt, Qatar, and Oman.

The retail division’s challenges continued into H1 2024. Revenues fell 6% to AED 16.7 billion. The group saw its retail profits drop by 47%, which shows serious market challenges in all its territories.

These changes impacted MAF’s large network of over 320 Carrefour stores in 16 countries. The company’s market presence remained strong where it managed to keep exclusive Carrefour brand franchising rights.

Consumer and Market Response

Majid Al Futtaim revealed HyperMax in 11 locations throughout the Sultanate of Oman. The new brand’s 6-month old flagship store at the Mall of Oman welcomes customers with exclusive offers and special activities during the soft launch period.

HyperMax’s market positioning emphasizes several key elements:

• Prioritization of local hiring and sourcing
• Wide selection of high-quality products
• Competitive pricing structure
• Value-driven promotional offerings
• Modern shopping experience

HyperMax lines up perfectly with Oman Vision 2040 and shows dedication to local economic development. Therefore, the transition features clear communication with customers through official notices on platforms of all types.

The retail group managed to keep its focus on customer service despite the most important changes. Of course, competitive pricing and value-driven promotions show a strategic approach to customer loyalty during the transition period. The new brand welcomes shoppers to their refreshed retail experience with special promotions and activities.

Majid Al Futtaim’s strategic move from Carrefour to Hypermax brings a major change to Middle Eastern retail dynamics. The company has transformed operations in various locations. It converted 34 outlets in Jordan first and now 11 stores in Oman will make the switch. MAF’s adaptability shows clearly through these changes, as seen in its financial results throughout 2023 and early 2024.

The retail giant sources products locally and creates jobs that line up with regional development goals, especially Oman Vision 2040. Customer feedback for Hypermax proves positive with competitive prices and special promotions driving acceptance. MAF shows its steadfast dedication to market sustainability despite recent profit challenges.

This retail transformation goes beyond just changing the brand name. MAF understands what regional markets need and combines local economic priorities with modern retail practices. Carrefour’s exit may end an era, but Hypermax’s arrival shows MAF’s progress toward a more locally focused retail model in the Middle East.