Devastating results Carrefour "show need for a transformation plan", says CEO

Carrefour has suffered a 1.3 billion euro loss in 2017, and saw its like-for-like turnover growth halved. The weak results do show the need for a transformation plan, says CEO Alexandre Bompard.

Crucial year

When the French retail group presented its annual results, nobody expected good news and none was delivered: like-for-like turnover growth reached 1.6 %, compared to 3 % in 2016. Operational profit was 2 billion euro, which is a 14.7 % slump. Its operational margin shrank to 2.5 %.

The reasons for the weak results? Strong competition (mainly in France), increased distribution costs in the largest markets, more write-offs after a series of considerable investments and a difficult Argentinian situation.

“These results show that Carrefour needs to implement its transformation plan without delay”, CEO Bompard added. “The group will now focus on Carrefour 2022, with ambitious action plans that are currently being implemented into every geographical area. The plan has to turn Carrefour into the leader of the food transition industry and should result in a prime omnichannel model. We are back on the attack and will invest to get growth again.” 2018 will be a crucial year to transform the group and the retailer suggest to lower the dividend by 34 %.