(BFM Bourse) – Carrefour shares ended down more than 5% this Wednesday, while the latest Kantar barometer showed a decline in its market shares in France while E.Leclerc crushes the competition.
In a fairly sluggish market, with the CAC 40 losing 0.16% this Wednesday, Carrefour shares stood out. In bad.
The title of the distribution group led by Alexandre Bompard fell by more than 5%, showing by far the biggest drop in the CAC 40.
This pronounced decline comes as the latest data compiled by the Kantar firm and relayed by LSA turned out to be unfavorable for Carrefour. Over the period from October 30 to November 26, the market share of all the group’s brands fell by 40 basis points (i.e. 0.4%) compared to the comparable period of 2022, to 18.8 %.
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An exaggerated drop?
Conversely, the E.Leclerc group (unlisted) crushes the competition, with an increase in its market share of 1.6 percentage points, which consolidates its leadership at 24.6% over this period.
“It is not so surprising that Carrefour’s market shares are falling but perhaps the market was not expecting such a pronounced decline. But in any case the fall in the share price is extremely severe,” considers a specialist sector analyst.
In October, the HSBC bank wanted to be reassuring about the erosion of the company’s market shares, judging that it did not necessarily mark a trend destined to last. She also considered that Carrefour was “on track to cope with disinflation” in its sector.
She also praised the group’s distributor brands which represent “strategic weapons in terms of differentiation and loyalty and constitute key tools for improving the image of the brand and price”.
Apart from Kantar data, our colleagues at AOF link this Wednesday’s decline to Argentina where the newly elected president, Javier Milei, announced shock measures, such as a 54% devaluation of the peso. It should be noted, however, that sales in this country where inflation exceeds 140% represented only 4% of Carrefour’s total in the third quarter.
Julien Marion – ©2023 BFM Bourse
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