Carrefour plans €1bn asset sale
Renewed focus on French market
Carrefour plans to sell assets worth €1bn in the year ahead as it focuses on driving sales in the increasingly tough French market.
The world’s second biggest retailer plans to sell underperforming stores outside France, planning to reinvest the proceeds in its home market as well as its strongest growth areas internationally, such as China.
Carrefour did not say whether it plans to exit any markets entirely. A separate company will be set up to better manage the retailer’s €8bn property portfolio.
Carrefour’s first-half profits increased 5.3 per cent to €537m, ahead of analysts forecasts. Investors have been taking a cautious view since Carrefour reduced its full-year growth forecast from 6 per cent to 5 per cent in July.
The retailer plans to invest cash in new stores in France, hoping to offset weaker same-store sales as it faces increased competition from rivals such as LeClerc and Casino. In order to better compete with the discounters, €335m will be cut from its selling prices in France this year.
Chairman Daniel Bernard said Carrefour’s French hypermarkets gained market share in June and July. He told French TV: “In France, we’ve invested massively in prices to recover market share. We’re starting to see the results.”‘
Carrefour said it will open 1m sq m of new sales space this year, including 200,000 sq m in France and a similar amount in China. It will also look for opportunities for tactical acquisitions to strengthen its market shares in countries where it already operates.
