Turnaround at Carrefour Belgium: first operating profit in five years

Despite a declining market share and revenue under pressure, Carrefour in Belgium posted an operating profit last year for the first time since 2021. However, the retailer remained in the red on a net basis.

Fierce competition

Carrefour Belgium’s revenue fell by 2.5% last year to 4 billion euros, according to the recently filed annual report that De Tijd was able to review. Part of the explanation lies in the elimination of tobacco sales in stores larger than 400m²: excluding that effect, revenue would have risen by 0.8%. Unsurprisingly, the group’s independent stores are performing well: they recorded comparable revenue growth of 3.4%, while the integrated stores (40 hypermarkets and 43 supermarkets) saw a 1.8% decline. Market share fell by 30 basis points to just under 14%. Competition in the Belgian market is fierce.

Nevertheless, Carrefour Belgium posted an operating profit of 2.5 million euros, thanks in part to cost savings in logistics. This marks a turnaround, as the chain had been operating at a loss since 2021. There was still a net loss of 9.8 million euros. The improved figures are a boost for CEO Geoffroy Gersdorff, who, since taking office in 2022, has been doing everything in his power to return the retailer to profitability. This year, Carrefour expects to see a positive impact from Sunday openings at its integrated stores, which began in January.