Carrefour CEO eyes higher profits under core markets refocus

Published Wed, Feb 18, 2026 · 03:22 PM

[PARIS] Carrefour aims for one billion euros (S$1.5 billion) in annual cost cuts as part of CEO Alexandre Bompard’s new plan to boost profits and refocus on its core markets of France, Spain and Brazil, Europe’s largest food retailer said on Wednesday (Feb 18).

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 (AI) and data and technology in general.

Its shares were down over 4 per cent by 0810 GMT after the group reported a decline in last year’s operating profit late on Tuesday.

Ahead of an investor presentation later on Wednesday, Carrefour said that it aimed to raise its operating margin from 2.6 per cent in 2025 to 3.2 per cent in 2028 and 3.5 per cent in 2030 and targeted a cumulative net free cash flow of five billion euros over the 2026-2028 period.

“While management may be finally on the right track, Carrefour will remain a show-me story,” Bernstein analysts wrote in a note.

“You have to question why management are only just focusing on the core after 8 years in charge,” they added.

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 per cent down since the start of his tenure.

Carrefour’s operating profit margin has declined since the 2020 pandemic.

For 2026, Carrefour said that it was targeting more than 25 basis point growth in operating margin compared to 2025.

Carrefour noted that it aimed for annual capital expenditures of 1.8 billion euros at the start of the plan in 2026, rising toward 2.0 billion euros by the end of the plan in 2030.

Investments will focus on store modernisation, store expansion, notably in Brazil, and innovation related to AI, tech, and data.

As part of a strategic review kicked off a year ago, Carrefour has been disposing of non-core assets. It agreed to sell its Italian 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, also known as Carrefour Brazil, and refinanced its Brazilian debt.

Under the new strategy plan, Carrefour said that it was targeting a 25 per cent market share in France and a 20 per cent market share in Brazil by 2030, and aimed to strengthen its No 2 position in Spain. REUTERS