Carrefour under cosh

Carrefour’s profits have shown a steep 45% drop compared to those recorded in 2007. According to Retail Week, the group’s shares of net income from profit operations was down by 32.8% to £1.15 billion.

 

Commercial margin, as a percentage of sales, fell by thirty basis points due to the group’s commitment to price competition.

 

Chief executive of Carrefour Lars Olofsson commented that

“To accelerate our growth, we will strengthen our positions in France and Europe and focus our expansion on our growth markets with the highest potential. By increasing our knowledge of our customers and better serving them, by transforming ourselves to become more agile…we will achieve our ambition: to make Carrefour the preferred retailer.

“Carrefour’s resilient performance in 2008 underlines the group’s solid fundamentals. In a trading environment that remains challenging, we will focus on boosting our sales dynamics, while improving our organisation and improving our costs”.

 

 

Olfsson wants to sharply boost domestic performance, focussing on “France, France, France”.

Multiple prices - 4500 to be exact - are currently being slashed by 10% and coupons offering bigger reductions will be handed to customers at branches in a bid to retain loyalty and compete with less prestigious retailers.

 

The BBC reported recently that Carrefour said that they will increase its number of price promotions, and decrease its costs.

 

Elsewhere Carrefour is also under the cosh in Taipei, as two outlets there have been fined for what is said to have been a launch of misleading advertising during the Chinese New Year holidays.