Carrefour, in new plan 1 billion cost cuts per year and less foreign trade
The 2025 accounts also disappointed, with sales down 0.4% in the fourth quarter in France and net profit halved due to the exit from Italia. Share price falls on the Paris stock exchange
Key points
A cost cut of EUR 1 billion a year until 2030 and a perimeter of activity reduced to three countries: France, Spain and Brazil. After exiting Italy and Romania, Carrefour is launching its new 2030 strategic plan, with a restricted geography and along three strategic lines. The first is to win the customer and product battle through price, fresh produce, the Club loyalty programme and private labels. The second, consolidate shop growth through targeted expansion and franchising. Finally, accelerate performance through artificial intelligence, technology and data.
The new industrial plan
The objectives - outlined this morning - are to increase market shares to 25% in France and 20% in Brazil by 2030 and confirm itself as the second operator in Spain, cut costs by one billion a year, a recurring operating profit (Roi) of 3.2% in 2028 and 3.5% in 2030, a cash flow of 5 billion between 2026 and 2028, a payout from 50% to 60% on adjusted equity per share.
Detailing his third strategic plan since taking over as chairman and ceo in July 2017, Alexandre Bompard pointed out that "Carrefour is today adopting an ambitious new strategic plan, radically focused on growth and improving profitability".
The large retail group is facing difficult conditions in the highly competitive French market and weak consumer spending in both France and Brazil. Carrefour's share price is down almost 29% since the beginning of its tenure and Carrefour's operating profit margin has declined since the 2020 pandemic.
By 2026, Carrefour said it is targeting an operating margin growth of more than 25 basis points compared to 2025. Carrefour said it is targeting an annual capital expenditure of USD 1.8 billion at the beginning of the plan in 2026, rising to USD 2 billion by the end of the plan in 2030. Investments will focus on modernising shops, expanding them, particularly in Brazil, and on innovation related to artificial intelligence, technology and data. As part of a strategic review initiated a year ago, Carrefour has been divesting non-core businesses. In July it agreed to sell its Italia business and last week announced plans to sell its Romanian unit to Paval Holding for EUR 823 million. It also privatised its Brazilian subsidiary Atacadao SA, also known as Carrefour Brazil, and refinanced its Brazilian debt.
The aim is to consolidate - in France, Spain and Brazil - shop growth through targeted expansion and franchising and to accelerate performance through artificial intelligence, technology and data. It will also invest EUR 100 million per year in projects related to artificial intelligence. In this context, the French group said it has signed a strategic partnership with Vusion to implement electronic labels, connected rails and cameras in all hypermarkets and supermarkets in France.
