Belgian retailer Colruyt Group confirms interest in the acquisition of its loss-making French supermarket activities, but emphasises that other solutions for the French branch are being pursued as well.
Lack of scale
For the first time, Colruyt has acknowledged something is going on with its French supermarkets, six weeks after rumours about an imminent sale of its French supermarkets surfaced in the French media. The group is examining “several strategic options for the French integrated retail activities, such as for example a recovery program or a divestment”, it now admits in a press release. This concerns the approximately 100 supermarkets with the Colruyt Prix Qualité banner and Dats24 petrol stations. The report says nothing about the group’s French wholesale activities.
Colruyt group admits that the conditions on the highly competitive French food retail market are very challenging: “The stores have a positive contribution, but the activities are subscale to reach sufficient buying power and to cover overhead and logistical costs.” The most recent financial results showed that Colruyt suffered an operating loss of 32 million euros on a turnover of 900 million euros in the 2023-2024 financial year.
No guarantees
The retailer says that there are several strategic options on the table, including a recovery plan or a divestment. Colruyt “has received indications of interest”, but emphasises that no decision has been made yet and that no guarantee can be given that a transaction will ultimately take place. In the mean time, the company will do everything it can to safeguard the continuity of its operations and maximum employment.
In doing so, the group puts previous reporting in the French press into perspective: the trade journal LSA had claimed that Carrefour, Coopérative U, E.Leclerc and Intermarché are showing interest in taking over part or all of the stores and a deal could be completed by the end of May.
