Difficult third quarter for Carrefour | RetailDetail

Difficult third quarter for Carrefour

Difficult third quarter for Carrefour
Shutterstock

Carrefour’s quarterly results illustrate the major challenges the current CEO and his team face, especially in Western Europe. Belgian like-for-like turnover also dropped.

French hypermarkets struggle

Alexandre Bompard knows what he has to do: he has to revitalize the struggling French hypermarkets and kick the French retail group’s digitization into a higher gear. That has become even more poignant with rumours that Amazon is circling to acquire the chain. The third quarter results were largely as expected, but expectations were not too high anyway.

 

With a 21.859 billion euro turnover, a 1.9 % growth (if exchange rate fluctuations are ignored) and a 0.5 % like-for-like turnover growth, Carrefour published mixed results. France, with a 1.3 % turnover drop, is still worrisome: it suffered price drops in fruit and vegetables, unfavourable weather and calendar shifts. The chain’s hypermarkets are in particularly troubled waters (- 1.7 % like-for-like turnover), partially because a major birthday campaign for 2017 started three weeks later than it did in 2016. French supermarkets also face like-for-like turnover slumps (- 1.2 %), but the convenience stores and other formulas still posted growth, at 2.2 %.

 

Belgium also suffers

Belgian turnover was 1.059 billion euro, down 0.5 % on a like-for-like basis. The retailer blames the huge promotional pressure. Italian and Spanish like-for-like turnover also dropped 0.5 % and 0.3 % respectively, although the remodeled Eroski stores did perform well. Poland and Romania were two excellent markets (up 4.4 % and 9.2 % respectively).

 

Everything fared better in Latin America: Brazilian turnover grew 5.3 %, partially through better non-food sales. Argentina published a 17.4 % turnover increase. China limited its slump to – 4.6 % and Taiwan grew 0.9 %.

 

Carrefour now targets a 2 to 4 % full-year turnover growth. The new board will present the outlines of its transformation plan by the end of the year.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Tom&Co eyes 100 French stores

21/06/2018

Belgian pet shop chain Tom&Co continues its expansion in France with the opening of its 25th French store in Nantes. With a new concept, the chain hopes to be able to quickly expand to 100 stores in France.

France wants e-commerce tax

21/06/2018

If the French government get their way, the Hexagon will soon introduce a tax on e-commerce. Products would become 1 to 2 % more expensive, depending on the distance of the last delivery.

Colruyt Group beats expectations

19/06/2018

A solid holiday season allowed Belgian Colruyt Group to raise its market share and even keep its profit margins at the same level - contrary to expectations. The company also posted another online growth, meaning online is now worth 370 million euro.

Makro Belgium "in intensive care", new business plan should remedy

18/06/2018

A more professional product range and a return to bigger packages: that is how Makro Belgium wants to return to better ways. Its CEO Vincent Nolf admits the chain is currently "in intensive care", but hopes to see improvement already next year.

Online supermarket Wink.be throws in the towel

18/06/2018

The Belgian Louis Delhaize Group has decided to terminate its online supermarket Wink.be. The company was started in 2013, but never even came near reaching the break-even point.

Alter’Native Food: A place apart at the upcoming SIAL Paris !

14/06/2018

(Advertorial) From 21st to 25th of October, Paris will be the world's food capital. 7,200 French and international exhibitors will be presenting their innovations among 21 exhibitions sectors.