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After two years of testing, Carrefour decides to discontinue units in condominiums; understand the reasons and impact of this decision on retail.
Carrefour surprised customers and residents of condominiums in the São Paulo and ABC Paulista regions by announcing the closure of 29 autonomous stores. These units, located inside condominiums, were part of a model that the chain tested over the last two years. However, the company decided to discontinue the service, citing changes in business strategy. Read on to learn everything about the end of Carrefour's popular service.
The end of a popular Carrefour service
Carrefour’s standalone stores were convenient for condominium residents, offering quick access to grocery items without having to travel. The new offering seemed promising, especially during the pandemic, when proximity and ease of shopping were even more valued.
However, despite the good flow of customers reported by some condominiums, as pointed out by an affected condominium manager, Carrefour has decided to end this operating format. According to industry experts, the autonomous store model is not viable for a large company like Carrefour, which has an annual revenue of over R$100 billion.
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Carrefour's decision to end its popular service was based on the low profitability of its business model. For an operation as robust as Carrefour's, the financial return from autonomous stores did not justify the operating costs involved, leading the chain to reevaluate its strategy and seek more profitable ways to invest in the market.
Opportunity for competition
With the closure of Carrefour stores, other companies began to see opportunities. This is the case of Hirota, a supermarket chain that has been operating autonomous stores in condominiums since 2020.
Helio Freddi, director of Hirota, revealed that at least 12 condominiums have already approached the company interested in replacing the units deactivated by Carrefour.
Hirota is taking advantage of the moment to expand its presence in this market niche, offering proposals to occupy the spaces left by the French giant.
“Carrefour’s exit has opened doors for us to reinforce our proximity strategy. We are studying each case to ensure that we can meet the needs of these condominiums,” said Freddi.
Carrefour's strategy: focus on profitability
The closure of Carrefour’s autonomous stores reflects a strategic decision by the company, which seeks to prioritize more profitable operations. The autonomous model requires significant investments in technology, logistics and maintenance, which can be difficult to justify when the returns do not match the financial effort.
Retail experts point out that standalone stores work best for smaller or specialized chains, which can focus exclusively on that model. In the case of Carrefour, diversifying into large-scale stores, e-commerce and wholesale operations seems to be more in line with the company’s size and priorities.
Condominiums reaction
The news of the end of Carrefour’s standalone stores came as a shock to many condominiums. The convenience they offered residents was an important differentiator, and the chain’s sudden exit left a void to be filled.
A condominium manager from one of the affected condominiums said that the stand-alone store had a steady flow of customers and that the decision was unexpected. Now, the condominiums are looking for alternatives to fill the gaps left by the chain.
The future of autonomous stores
Although Carrefour has decided to abandon this segment, the business model autonomous stores continues to grow in Brazil, especially in specific niches. Chains like Hirota and technology-focused startups see unmanned stores as an opportunity to serve consumers looking for convenience and speed.
The transition to a more digital retail and efficient is a global trend, but not all formats are suitable for large companies. For smaller chains or startups, standalone stores may be more viable, as they require less sales volume to become profitable.
For giants like Carrefour, the focus seems to be on operations that can leverage larger volumes and more expressive margins, such as wholesale retail, e-commerce and large supermarket stores.
A new chapter for Carrefour and the market
The closure of standalone Carrefour stores marks the end of an experiment that, while popular with consumers, has not proven sustainable for the retail giant. The decision reflects a search for strategies more aligned with the company’s scale and financial priorities.
As Carrefour restructures, smaller chains like Hirota are poised to step into the gap and expand their operations. Competition in the standalone store segment is just beginning, and the market will continue to evolve as companies of all sizes explore new ways to meet consumer needs.
Residents of condominiums can only hope that new options will arrive quickly, maintaining the level of convenience that stand-alone stores offer. After all, the search for convenience and innovation in retail is far from over.
