Retail

Dubai’s Majid Al Futtaim closes Carrefour in Oman

January 8, 2025, 5:14 PM

In August last year, Majid Al Futtaim operated 467 Carrefour stores across 14 countries

Retailer launches HyperMax
Follows similar move in Jordan
Carrefour hit by boycotts

Dubai-based retail conglomerate Majid Al Futtaim has launched its new grocery retail brand HyperMax in Oman, according to reports, after closing all of its Carrefour stores in the sultanate.

It follows a similar move in Jordan in November where its Carrefour franchise brand ceased operations and 34 HyperMax locations were opened across the country.

Carrefour has come under intense pressure since 2022 when a franchise agreement was signed with Israel’s Electra Consumer Products and its subsidiary Yenot Bitan.

As a result, the French supermarket giant has been subject of boycotts promoted by the Palestinian-led boycott, divestment and sanctions (BDS) movement.

A statement on Carrefour’s Instagram and Facebook accounts confirmed that its stores in the sultanate would close from January 7.

In a message to customers, it said: “We would like to extend our sincerest thanks and gratitude for your continued support throughout the decades”.

Majid Al Futtaim was contacted by AGBI for comment.

In its most recent financial results Majid Al Futtaim revealed that on the retail side of its operations there was an 11 percent year-on-year drop in revenue for the first half of 2024.

Revenues dropped to AED11.6 billion ($3 billion), while earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 47 percent year on year to AED278 million.

At that time, in August last year, the company’s retail arm included 467 Carrefour stores in 14 countries across the Middle East, North Africa and Commonwealth of Independent States regions.

The impact of the boycott on some international brands in the region has affected local companies.

Kuwait’s Alshaya Group last year cut jobs at its Starbucks outlets across the Middle East and North Africa in March as a result of the boycott since the start of the Gaza conflict.
Americana Restaurants International, which runs 2,435 outlets across the region covering brands such as KFC, Hardee’s, Pizza Hut, TGI Friday’s and Krispy Kreme, is another to have suffered from the ongoing boycotts.