Carrefour finds France tough going
Home sales to be boosted with price cut campaign
March 5 2004
Carrefour has found trading tough on its home territory over recent months, seein a fourth-quarter downturn in revenue in its French hypermarkets.
The world’s second-biggest retailer, behind Wal-Mart, saw net profit grow by 19 per cent in 2003, despite the tough French economy, which accounts for two-thirds of Carrefour profits.
With stores in 29 countries, Carrefour’s overall operating profit rose 7.5 per cent to €3.25 billion in 2003. In France, operating profit grew 3.9 per cent €2.14 billion
The company said addressing the weakness in its French hypermarket business is its main objective for 2004. It plans an aggressive programme of price rollbacks on core lines.
Carrefour has been rumoured to be a takeover target for Wal-Mart, but both the core Halley family shareholders and chief executive Daniel Bernard used the annual results to confirm their commitment to the business.
Bernard told journalists: “I don’t comment on rumors. All I will say is that hostile bids in a people sector like the services sector simply don’t work.”
