30/08/12 18:09 CET
| updated xx mn ago
| updated at xx
Carrefour’s new boss is promising to slash costs and defend the troubled retailer’s key markets like France, Brazil and China.
However George Plassat revealed few details of his long-awaited restructuring plan.
Asked if the group had set a goal for cost reduction over the three-year period, he said: “No, action plans are better than budgets.”
He was speaking after the French supermarket operator reported first-half results that were pulled down by poor performances in austerity-hit countries such as Spain and Italy.
Plassat – a retail veteran – took over the top job in May and has been much touted as Carrefour’s potential saviour.
It is underperforming particularly in its main market – Europe.
Carrefour is the world’s second-largest retailer by revenue after the US chain Wal-Mart.
As part of its cost cutting measures,the company has just told unions that it plans to lay off as many as 600 employees in France.
It will also reduce debt as it pulls back from countries such as Poland, Turkey and Indonesia, while defending its mature markets plus Brazil and China.
Carrefour shares rose strongly on the first-half results, which beat forecasts, and held on to their gains through Plassat’s presentation, even though some investors expressed disappointment at the lack of specifics.
Euronews Paris business correspondent Giovanni Magi, said: “Inevitably, the crisis is effecting large retailers, especially in groups like Carrefour, which have a major presence in recession hit countries. Their restructuring plan includes job losses, which could lead to a strong reaction from unions here in France.”
Plassat has said he needs three years to turn around Carrefour, whose challenges include halting a fall in market share in France, where it makes 43 percent of sales, cutting debt and weathering a difficult economic climate in Italy and Spain, where it makes just under 20 percent.
First-half underlying profit fell 8.2 percent to 769 million euros, hit by weakness in French hypermarkets and in Asia.
- 1To Russia with cash: Chinese tourists offset fall in Western visitors
- 2French and German finance chiefs discuss economic weakness and eurozone recovery
- 3Partnering to grow Europe
- 4TUI shifts destination focus over security concerns in Turkey and North Africa
- 5Connecting Europe’s #Digitalsinglemarket
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International news | euronews, latest international news
- 3Most Istanbul blast victims ‘were German’, says Turkey
- 4Madrid to appeal Catalan road to independence from Spain
- 5Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 6Partnering to grow Europe
- 7Moldova: protesters storm Parliament
- 8Hope vs harsh reality: challenges to global education goals in the 21st century
- 9Extras : euronews : the latest international news as video on demand
- 10Norway sends Syrian refugees back to Russia
- 11Merroussis clinches the 33rd Athens Authentic Marathon
- 12‘National’ funeral for Celine Dion’s husband ‘over the top’
- 13Jorge Lorenzo clinches his third MotoGP title in Valencia
- 14Special Reports : euronews : the latest international news as video on demand
- 15Benzema questioned in French sex tape case
- 16latest Learning World - All Programmes | euronews : the latest international news as video on demand
- 17Paris: “I would rather see my brother in prison than in a cemetery”
- 18Brussels remains on high alert: ‘multiple operations underway’ across Belgium
- 19International breaking news | euronews online world breaking news in video
- 20account : euronews : the latest international news as video on demand
Sanofi earnings to be ‘stable’ despite declining sales
TUI shifts destination focus over security concerns in Turkey and North Africa
Peugeot Citroen compensates Iran for sanctions prompted pull out
Volkswagen emissions scandal delays 2015 financial results and shareholders’ meeting
Toyota in optimistic mood over China and US
Wires > Business
- 01:07 CET Millennials are shifting car ownership model; ask Toyota
- 00:58 CET Japan January wholesale prices fall 3.1 percent year-on-year
- 23:44 CET HSBC money laundering report’s release likely delayed – U.S. judge
- 23:39 CET Viacom CEO rails against ‘naysayers’ as sales miss estimates…
- 22:32 CET Banks eye more cost cuts amid global growth concerns
- 22:12 CET GM recalling 473,000 SUVs, pickups in North America for brake…
- 22:08 CET Exclusive – Apex Capital CIO departs to launch hedge fund – letter
- 22:03 CET Amazon expands logistics reach in China