Gripped by protests and growing consumer boycotts, the French retail giant Carrefour has curbed its operations in the Middle East while exiting completely from several countries in the region.
The pro-Israel mall operator and supermarket chain has closed all its operations in Jordan, Oman, Bahrain and Kuwait.
The move comes amid declining sales, pro-Palestine boycotts and growing financial pressures, while Carrefour has also been forced to restructure its European operations.
It has been reported that Carrefour stores in the affected Middle East countries are being converted to HyperMax, a brand launched by Majid Al Futtaim who has said the rebrand will allow it to focus more on locally-sourced produce to meet consumer demands.
Carrefour’s complicity
Despite the anger and outrage at the genocidal actions of Israel in Gaza and the occupied Palestinian territories, it has been business as usual for Carrefour across Israel and the occupied West Bank.
The retail giant operates in Israel through a franchise with a company known as Electra Consumer Products, which owns the Israeli supermarket chain Yenot Bitan.
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The company has many branches across Israel, including sensitive locations in East Jerusalem and the West Bank, internationally recognised as occupied territories.
Carrefour even operates many stores on illegal Jewish settlements in the West Bank such as Neve Ya’akov, Ma’ale Adumim, Ariel and Alfei Menashe.
In February 2024 it was reported that Carrefour Israel had been distributing “care packages” to IDF soldiers during the Israeli war on Gaza. The packages for Israeli soldiers reportedly included food and hygiene items.
The BDS movement criticised this as complicity in military operations, while Carrefour stated that these were employee-led initiatives and not company-sanctioned.
Despite some product withdrawals from illegal settlements, Carrefour franchise agreements remain active across Israel and the occupied Palestinian territories, continuing to draw the scrutiny and ire of BDS activists and human rights organisations across the world.
BDS campaign
Founded in 1959 in Annecy, France, Carrefour opened the world’s first hypermarket in 1963, combining groceries with household goods under one roof.
In 1995, Dubai-based Majid Al Futtaim secured exclusive franchise rights to bring Carrefour to the Middle East.
Over three decades, Carrefour became a household name in the Middle East, offering international products alongside local goods and creating thousands of jobs.
But the Boycott, Divestment and Sanctions (BDS) movement has accused Carrefour of supporting Israel through its investments and commercial ties with the country.
Human rights activists have cited the following:
- Carrefour continues to have franchise partnerships in Israel
- The company stocks goods from illegal Israeli settlements in the occupied West Bank
- Using Israeli logistics networks for products linked to illegal settlements
- Carrefour has expanded Israeli franchise operations in 2022–23
- Ignoring appeals from advocacy groups to sever ties with suppliers linked to illegal Jewish settlements
Despite investing millions in Israel and the occupied Palestinian territories, Carrefour denies allegations of wrong-doing. The company states that it operates through franchise partners, complies with international law, and that it does not directly manage stores in Israel.
Protests across Europe
Following revelations that Carrefour had been supplying food and hygiene products to IDF soldiers fighting in Gaza, demonstrations by human rights and pro-Palestine activists have targeted the supermarket branches across Europe:
- France: Activists staged protests at Paris stores, distributing flyers and urging shoppers to boycott the chain over alleged support for Israeli military actions.
- Spain: In Barcelona, protesters blocked La Rambla outside a Carrefour store, calling for a boycott of companies perceived to support Israel.
Carrefour’s distribution of food packages to IDF soldiers fighting in Gaza have sparked protests at stores across Europe. Picture Credit: Anadolu Agency
Experts say that consumer boycotts have left the company reeling, causing it significant financial pain.
As a result, Carrefour has also been forced to undertake a major restructuring in Europe amid declining sales and strategic realignment:
- Poland: The chain is seeking buyers for around 800 stores and 40 shopping centers.
- Italy: Carrefour has agreed to sell its loss-making business to New Princes Group.
- France: on its home territory, Carrefour has transferred 15 hypermarkets and 24 supermarkets to independent operators, affecting over 4,000 employees.
- Belgium: Carrefour plans to close its remaining seven Cora hypermarkets by 2026.
For much of 2024 and 2025, Carrefour’s Middle East business has faced falling footfall and shrinking profit margins, particularly in smaller markets. Rising global supply chain costs added further pressure, cutting into the chain’s profitability.
