Advertise with fastmoving.co.za
 
 

Carrefour Q2 2013 results, Preparing for life as a healthy #2 in the market, rather than an ailing #1
Carrefour Q2 2013 results, Preparing for life as a healthy #2 in the market, rather than an ailing #1

Carrefour Q2 2013 results, Preparing for life as a healthy #2 in the market, rather than an ailing #1

RETAILER NEWS

Comment from Gildas Aitamer, Retail Analyst at Planet Retail, - Jul 25th 2013, 15:17

On Carrefour’s second-quarter results, Gildas Aitamer, Retail Analyst at Planet Retail, commented:  

“As anticipated, Carrefour’s recovery in its home market remains difficult in light of a challenging price-focused competitive environment, alongside an unfavorable economic climate that has taken its toll on non-food sales. Even so, we remain confident that Carrefour’s efforts towards consistency, rationalisation of processes and appointment of expertise in key posts will eventually enable the retailer to get back on track. It will, however, lose its crown as France’s largest retailer earlier than expected, but better to be a relatively healthy number two in the market than an ailing number one.

“Internationally, with Carrefour now centered on three main geographical areas, and increased capex announced for France, Brazil and China, the retailer is well-configured to look towards long-term growth. All the same, it still has plenty on its the plate, as both BRIC operations have encountered slowing growth - Brazil impacted by negative exchange rates and the need to sustain long awaited Chinese positive like-for-likes. With the latter market, Carrefour is believed to be assessing its options. While a full-scale withdrawal seems highly unlikely, a degree of guidance on the strategic direction for China would be very welcome.

“In addition, the retailer remains under pressure to exercise price restraint by an Argentinian government fighting a war on inflation. Last but not least, the situation in Europe is as problematic as ever, with Spain and Italy in particular continuing to weigh heavily on Carrefour’s performance in Western Europe, while in CEE, Poland and Romania are both approaching potentially tricky points in their respective retail market development.”

Gildas is available for further comment and can be contacted on +49 (0) 6996 21 7575 or via e-mail at gildas.aitamer@4c.planetretail.net  

Related News

US jealousy sparked trade wars, says Chinese ambassador
21/05/2019 - 10:48
The US is jealous of China’s rapid economic growth and achievements in the past few years and was using the trade wars to frustrate and stall it, Lin Songtian, the Chinese ambassador to SA said.

Alibaba beats analyst estimates as recommendations boost sales
17/05/2019 - 09:38
The Alibaba Group posted quarterly revenue and earnings that topped analyst estimates as personalised recommendations drive consumer spending across its shopping sites.

Carrefour franchisee on prowl for acquisitions to grow in Africa
03/04/2019 - 08:42
Majid Al Futtaim Holding, an operator of French retailer Carrefour SA outlets, plans to boost its presence in Kenya as it looks to expand into eastern and southern Africa.

Nestlé opens new research and development centre in Beijing
26/03/2019 - 10:08
Nestlé aims to accelerate trend-based innovation in China as it inaugurates a new research and development centre (R&D) in Beijing and a system technology hub in Shenzhen.

Global economic slowdown and trade war hit risk appetite
12/03/2019 - 11:18
More and more evidence that the global economy is turning for the worst and the more aggressive stance of the US on trade tariffs against China had led to a sudden turn-around in risk appetite across the globe.