Carrefour Q2 2013 results, Preparing for life as a healthy #2 in the market, rather than an ailing #1
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 firstname.lastname@example.org
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