Geoffroy Gersdorff “Carrefour Belgium will break even in 2024”

Carrefour has had a difficult first half of the year in Belgium, CEO Geoffroy Gersdorff admitted, but it is preparing for the crucial year-end period with a clear ambition: “We are going to achieve our objectives.”

Range evolves

The CEO had invited the press to the Carrefour Salon, the big end-of-year fair where 2,000 employees from 720 shops came to learn about the new products, concepts and commercial promotions for the autumn. The next four months are a crucial period as the holiday season always accounts for a substantial part of annual sales.

The focus during the show was on private label products, which should come as no surprise. “One in two products we sell in our shops is a private label product”, the CEO pointed out. “We have expanded their range and improved the products. Our range is constantly evolving: we have dropped 6,000 references in recent years and added 2,000 new ones to respond to customer expectations. These really are a ‘moving target’ these days: difficult to keep in sight.”

Sundays hurt

Innovation is an important lever for Carrefour: “We are betting on our organic and plant-based offer, protein-rich products and a first-price range. We take into account the differences between the North and the South of the country, and those between urban and rural areas. There are no two of our shops with identically the same assortment: based on the data provided by our Bonus Card, we serve local needs.”

The first half of the year was difficult for Carrefour, due to a high base for comparison. Last year, the chain profited from the unrest at Delhaize, but that effect has worn off and the market has changed dramatically. The increase in Sunday openings at Delhaize’s franchised stores – and Mestdagh’s former Carrefour shops acquired by Intermarché – is having an impact on sales. “But there are no excuses”, says the CEO: “we are doing everything we can to safeguard our market share. We have never opened as many shops as in the first half of the year (twenty), while we also refurbished sixty others.” Moreover, the retailer has managed to put an end to its logistical problems: service levels are at record heights.

“Quality matters most now”

E-commerce has long been a tough story for Carrefour, Gersdorff admits, but in recent months the retailer has seen growth of 40 % here. “We are gaining market share thanks to the combination of our four solutions: pick-up in the stores, home delivery, fast delivery and quick commerce – where we are now the market leader thanks to our collaborations with Deliveroo, Takeaway.com and Uber Eats. However, with the shop density in Belgium, I do not believe in an explosion for e-commerce. It will remain an additional service.”

In addition, purchasing power remains a priority: “Inflation for food products is falling, but general inflation continues to rise. That is why we have reduced the price of more than 2,500 references, although we do not aim to be the cheapest: we have other assets, such as the biggest range, the most discounts, service in fish and meat, and so on. The discourse has been about prices for two years, now we want to talk about quality again.”

“No doubts”

And the figures? For the past two years, Carrefour Belgium has not been profitable, the CEO admits. The objective for 2024 is to at least break even, Gersdorff adds: “We work on costs and on margins, but we also continue to invest, with a capex of more than eighty million euros for the shops and IT. I have no doubts about Carrefour in Belgium: we have our own strategy, the first positive results are becoming visible, we are going to reach our objective.”

Geoffroy Gersdorf is a keynote speaker at RetailDetail and LD&Co’s FMCG & Category Management Congress on 10 October in Antwerp. Lidl, Faitrade Belgium, Perfetti Van Melle, Nationale Loterij and Impaqtr will also share valuable shopper marketing insights there. Tickets can be ordered via the button below.