Supermarket chain Carrefour. ARCHIVE

Carrefour, one of the Gulf’s most recognizable supermarket brands, has abruptly shut down all its stores in Kuwait, following similar exits from Bahrain, Oman, and Jordan in less than a year. The closures, managed by Dubai-based Majid Al Futtaim (MAF)—the exclusive operator of Carrefour in the Middle East—are being closely watched by consumers and analysts, with many asking: could the UAE be next? The Kuwait exit, announced on September 16, came just two days after Carrefour stores in Bahrain shut their doors. In both countries, Carrefour was immediately replaced by HyperMax, a new MAF-owned grocery chain emphasizing local products. HyperMax has already launched six outlets in Bahrain and dozens more across Jordan and Oman, with partnerships involving local farmers and suppliers.

Why Carrefour stores are closing

While MAF has not issued a detailed explanation, experts point to three main drivers: Financial performance: “Carrefour has not been doing well in the region, given strong competition from players such as Lulu who have expanded strategically,” said Rabia Yasmeen, global insights manager for e-commerce at Euromonitor International. Shift to localisation: HyperMax is positioned as a homegrown brand focusing on affordability and locally sourced goods. Political sensitivities: Some western brands—including Carrefour—have faced consumer boycotts tied to their links with companies operating in illegal Israeli settlements. The Boycott, Divestment, Sanctions (BDS) movement has claimed credit for Carrefour’s exit from Jordan, saying its global campaign, launched in 2022, pressured the chain to withdraw.

What this means for the UAE

Despite the wave of closures, analysts say Carrefour’s UAE presence is unlikely to be at immediate risk. Carrefour has deep roots in the UAE, where it has built strong consumer trust since entering the market in 1995. “The UAE retail market is one of the most competitive in the region, and long-standing brands like Carrefour have built strong trust with consumers. Replacing such a brand always carries risks,” Dr John Katsos, professor at the American University of Sharjah, told The National. Industry experts believe MAF may pursue a dual-brand strategy in the UAE, continuing Carrefour while gradually growing HyperMax. A similar approach has worked before: MAF rebranded its Cinestar Cinemas into Vox Cinemas in 2011, successfully creating a homegrown brand that dominates the market today. Carrefour continues to operate more than 390 outlets across 12 countries in the Middle East, Africa, and Asia. MAF has also renewed its long-term franchise agreement with Carrefour Group, extending its exclusivity until 2025 and beyond. Meanwhile, HyperMax is expanding aggressively, with 44 stores already operating in Jordan and Oman, alongside Bahrain and Kuwait. MAF has said its strategy is to support local supply chains and consumer preferences for affordable, locally grown food. For shoppers across the GCC, this marks the end of an era: Carrefour, a name long associated with affordable groceries, is disappearing from more shelves. Whether HyperMax can replicate its loyalty remains to be seen. CAM/ICA/Expat Media
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