Suppliers Could Face Tighter Margins With Casino's Carrefour Buy

Suppliers in Thailand are facing the threat of tighter margins following Casino's acquisition of 42 Thai stores from Carrefour in November 2010. As we have previously highlighted, French retailer Casino's acquisition of Carrefour's Thailand operations is expected to level the playing field between itself and market leader Tesco Lotus in the Thai hypermarket sector as Casino gains comparable scale to compete against Tesco Lotus for market leadership (see 'Casino's Carrefour Buy Leaves Field Clear For Leading Duo', January 6 2011). This duopoly is likely to take a financial toll on suppliers, with their margins coming under increasing pressure as a result of the greater buying power of the leading duo.

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