Renewable Energy

Carrefour sees more retail sector consolidation, including in France

Credit: REUTERS/Eric Gaillard

The boss of Carrefour said on Friday the retail sector was bound to consolidate in the coming years, notably in France, as competition intensifies, and that his mission was to make sure the French retailer came out a winner.

By Dominique Vidalon

PARIS, June 14 (Reuters) - The boss of Carrefour CARR.PA said on Friday the retail sector was bound to consolidate in the coming years, notably in France, as competition intensifies, and that his mission was to make sure the French retailer came out a winner.

When asked if Carrefour could exit underperforming countries such as Italy or China, Alexandre Bompard told an annual shareholders meeting he was confident his overhaul plan "could improve the operational situation in each of our countries".

Carrefour, which is Europe's largest retailer, is in the midst of a five-year plan it launched in January 2018 to cut costs and jobs, boost e-commerce investment and seek a partnership in China with Tencent 0700.HK.

Carrefour's plan, which also entails a greater focus on areas such as fresh local products, organic food and sustainability, is aimed at helping the retailer boost profits and revenues, and tackle competition from Amazon AMZN.O.

"There are a lot of competitors in markets like Italy or in France and weak sector margins and we are only at the beginning of the arrival of large platforms like Amazon. There will be difficulties and consolidations in coming years," Bompard said.

"My mission is to be in the winners' camp and the transformation we are conducting will put us among winners,"

Last year, Carrefour and French rival Casino CASP.PA were locked in a dispute after Casino said it had rejected a tie-up approach from Carrefour that Carrefour denied making.

Since then, Casino's parent Rallye GENC.PA has filed for protection from creditors.

Meanwhile, French rival Auchan AUCH.UL has sold most of its loss-making business in Italy, while it also faces tough market conditions in France.

Last month, people familiar with the matter told Reuters that Carrefour was exploring the sale of a minority stake in its loss-making business in China and had started sounding out potential buyers.

The group has, however, said a sale of the business in China was not on the agenda.

In line with Carrefour's ambition to become a leader in the global transition towards healthier and more sustainable food, its shareholders on Friday approved a new mission statement to include its commitment to the transition in its bylaws.

(Reporting by Dominique Vidalon; Editing by Mark Potter)

((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More