Picture for illustrative purposes only. ARCHIVE

French retail giant Carrefour is scaling back its international footprint as it seeks to boost profitability and simplify operations. The company announced it will concentrate future growth on core markets France, Spain and Brazil, which together account for about 85 percent of total sales and nearly all recurring operating income. The strategic update follows weaker-than-expected fourth-quarter sales in France and missed profit forecasts. Like-for-like sales in France rose 0.4 percent, below analysts’ expectations of 0.7 percent. Recurring operating income also fell short of projections. Shares dropped as much as 5.3 percent in Paris following the announcement. Chief executive Alexandre Bompard said, “We want to reach the profitability of our best-performing peers.” Carrefour aims to increase its operating margin to 3.5 percent by 2030, up from around 2.6 percent in 2025, while cutting costs by €1 billion annually. The company has agreed to sell its Romanian business to Paval Holding for €823 million. The deal covers 478 stores and generated €3.2 billion in gross sales. “The sale of Carrefour Romania confirms the good progress of the portfolio review initiated in 2025,” Bompard said. “I am confident that the agreement reached with Paval Holding represents a great opportunity for their continued success.” Carrefour has also exited Italy and is seeking buyers for its operations in Poland. Belgium has become a focal point for potential restructuring. In contrast, Carrefour’s presence in the UAE remains stable. In the GCC, stores operate under a franchise model managed by Majid Al Futtaim, which holds exclusive rights across the Middle East, Africa and Asia. The group operates more than 390 stores, including over 175 in the UAE. Globally, Carrefour operates more than 14,000 stores in over 40 countries. In its core markets, it plans to expand convenience formats, invest in technology including artificial intelligence, and improve pricing systems to strengthen competitiveness. For shoppers in the Gulf, Carrefour’s franchise structure limits direct exposure to the French parent company’s financial pressures. For investors, the question remains whether focusing on fewer countries will deliver stronger and more consistent returns. CAM/Expat Media
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