PARIS, Feb 18 (Reuters) - Europe's largest food retailer Carrefour on Wednesday vowed to grow its cash and profitability, aiming for an operating margin of 3.2% in 2028 and 3.5% by 2030, as part of
Carrefour's CEO Aims for Increased Profits with Strategic Refocus
Carrefour's Strategic Focus on Growth and Profitability
By Dominique Vidalon
PARIS, Feb 18 (Reuters) - Europe's largest food retailer Carrefour said on Wednesday it was aiming for 1 billion euros in annual cost cuts as part of its CEO Alexandre Bompard's new plan to boost profits and refocus on its core markets of France, Spain and Brazil.
While the group also plans price cuts, that will be offset by savings achieved through the acceleration of the franchise model in France, as well as increased use of artificial intelligence and data and technology in general.
Financial Goals and Cost-Cutting Measures
Ahead of an investor presentation later on Wednesday, Carrefour said it aimed to raise its operating margin from 2.6% in 2025 to 3.2% in 2028 and 3.5% in 2030 and targeted a cumulative net free cash flow of 5 billion euros ($5.92 billion) over the 2026-2028 period.
'RADICAL' FOCUS ON GROWTH AND PROFITABILITY
Bompard, who will detail his third strategic plan since taking over as chairman and CEO in July 2017, said: "Carrefour is adopting an ambitious new strategic plan today, radically focused on growth and improving profitability."
He faces challenging conditions in the highly competitive core French market and weak consumer spending both in France and Brazil. Carrefour's share price remains nearly 29% down since the start of his tenure.
Carrefour's operating profit margin has declined since the 2020 pandemic.
For 2026, Carrefour said it was targeting more than 25 basis point growth in operating margin compared to 2025.
Carrefour said it aimed for annual capital expenditures of 1.8 billion at the start of the plan in 2026, rising toward 2.0 billion by the end of the plan in 2030.
Market Share Targets and Investments
Investments will focus on store modernization, store expansion, notably in Brazil, and innovation related to AI, tech, and data.
Challenges in Core Markets
As part of a strategic review kicked off a year ago, Carrefour has been disposing of non-core assets. It agreed to sell its Italy business in July and last week announced plans to sell its Romanian unit to Paval Holding for 823 million euros.
It also took private its Brazilian unit Atacadao SA, also known as Carrefour Brazil, and refinanced its Brazilian's debt.
Under the new strategy plan, Carrefour said it was targeting a 25% market share in France and a 20% market share in Brazil by 2030, and aimed to strengthen its number two position in Spain.
($1 = 0.8445 euros)
(Reporting by Dominique Vidalon;Editing by Sudip Kar-Gupta and Tomasz Janowski)
