(AOF) – The Carrefour group has appointed Carlos Alves as new hypermarket commercial director, effective September 19, after the scheduled departure of Eddy Gendronneau for Carrefour Belgium. Carlos Alves was previously director of the group’s fresh produce sales development.
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Key points
– First European food distributor and second in the world;
– Activity of €78.1 billion concentrated in four major markets, France for 45% of sales, the rest of Europe -Belgium, Spain, Poland, Romania and Italy, Latin America -Brazil and Argentina-then Taiwan;
– Ambition to become the world leader in the food transition with a focus on fresh and organic products via the global Act for food program (eating healthy, local and accessible to all);
– Capital marked by the strong presence of 5 shareholders: the Moulin family, also owner of Galeries Lafayette (12.91% of the shares and 17.75% of the voting rights), Peninsula Europe (7.61% and 11.83% ), Cervina Europe (4.99% and 7.67%) and Bunt (3.17%), the 16-member Board of Directors being headed by Alexandre Bompart, Chairman and Chief Executive Officer;
– Financial position with €11.3 billion in equity and stable net debt at €2.6 billion Record free self-financing of €1.3 billion.
Challenges
– 2023 strategy based on 2 pillars: global Act for food program and ambition to be the world leader in e-commerce with twice raised objectives: productivity through investments of €1.7 billion per year in competitiveness commercial and own brand (30% of sales) / omnichannel universe: opening of convenience stores, expansion of Promocash in France, acceleration of the Cash&Carry format with 20 new Atacadão per year in Brazil, etc. / additional savings of €2.7 billion;
– “Data-centric, digital first” innovation strategy around 4 axes: acceleration of e-commerce (tripling in 2026 vs 2021), ramp-up of data & retail media, digitization of financial services and operations traditional distribution channels: €2.8 billion in investments in information systems/strategic partnerships for the Carrefour Links platform;
– “Act for food” 2025 environmental strategy for carbon neutrality by 2040: reduction of indirect emissions by 35% in 2025 and 40% of direct emissions / circular economy: 100% reusable packaging / food transition: 45,000 partner producers in the organic, local or quality sector, 300 suppliers committed to the food transition pact (vs. 114 in 2021) / launch of a “green” loan;
– Acceleration of disposals of non-strategic assets (rumors of disposal on Taiwanese activities) and openings of convenience stores;
– Continued market share gains in France, Brazil and Spain, the group’s 3 key countries with 8/10ths of current operating profit.
Challenges
– Negative impact of currencies, in particular the Brazilian real;
– Sustained rise in inflation in transport, energy and foodstuffs, which will be offset by cost savings and the strengthening of Carrefour brand products;
– Integration of Grupo BIG, 3
th
Brazilian food distributor, and 172 stores and Supersol supermarkets in Spain;
– 2022 objectives: €4.8 billion in organic, 1/3 of sales under the Carrefour brand.
Urban transformation to enhance real estate heritage
Several initiatives are intended to densify the land around hypermarkets and/or to play on the mix of uses (commerce, office, housing and even urban logistics). Nhood, the company launched by the Mulliez family, has the mission of transforming into mixed neighborhoods sites belonging to the real estate companies of Auchan, Ceetrus and Nodi, and the real estate assets of other companies in the group. It will accelerate in this business of urban regeneration. The Mulliez family had planned to invest 1.8 billion euros between 2022 and 2026 in its real estate projects. This objective should soon be revised upwards. Carrefour, for its part, joined forces with the promoter Altarea in early 2021 to transform commercial areas into mixed neighborhoods.