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...



Questions or comments? Please feel free to contact the editors


Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.

Strong online growth for Hugo Boss

03/05/2018

German fashion brand Hugo Boss managed growth in every region in the first quarter. Group turnover grew 5 % to 650 million euro, partially thanks to strong web shop sales.

France will impose recycling for unsold clothing in 2019

02/05/2018

The French government plans to impose a ban on the disposal or destruction of unsold clothing by fashion companies. The measure extends the rules already in place for food waste to the spillage of clothing.