Carrefour suffers unexpectedly huge losses | RetailDetail

Carrefour suffers unexpectedly huge losses

The French supermarket giant Carrefour amassed 249 million euro in the last six months, far worse than analysts had expected – even after repeated profit warnings they had expected a 31 million euro profit. Chairman Lars Olofsson has subsequently lowered the expecttions for 2011 by 15%.



Even though Carrefour's sales were on the up in the emerging markets, Carrefour again led massive losses in its home market France, where its achievements were called “unsatisfying”. Not only its shrinking French market share, but higher purchasing costs too did nothing good for the French retailing giant. The net result was also weighed down by one-off charges of 884 million euro – 516 million of which caused by the Italian branch. Carrefour's operating profit went down 22% to 772 million.



“We have tried to do too much too quickly”, admitted CEO Olofsson, who admitted that Carrefour's performance was “disappointing”, partly due to economic circumstances – but also due to Carrefour's own mistakes. In November, Olofsson celebrates his three years in charge of the world's second supermarket chain. This analyst predicts that it will not be a very fun party...



The French supermarket giant Carrefour amassed 249 million euro in the last six months, far worse than analysts had expected – even after repeated profit warnings they had expected a 31 million euro profit. Chairman Lars Olofsson has subsequently lowered the expecttions for 2011 by 15%.



Even though Carrefour's sales were on the up in the emerging markets, Carrefour again led massive losses in its home market France, where its achievements were called “unsatisfying”. Not only its shrinking French market share, but higher purchasing costs too did nothing good for the French retailing giant. The net result was also weighed down by one-off charges of 884 million euro – 516 million of which caused by the Italian branch. Carrefour's operating profit went down 22% to 772 million.



“We have tried to do too much too quickly”, admitted CEO Olofsson, who admitted that Carrefour's performance was “disappointing”, partly due to economic circumstances – but also due to Carrefour's own mistakes. In November, Olofsson celebrates his three years in charge of the world's second supermarket chain. This analyst predicts that it will not be a very fun party...



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