Carrefour CEO eyes higher profits under core markets refocus (updated)

Carrefour SA

18/02/2026 08:03

Carrefour aims for 3.2% operating margin by 2028, 3.5% by 2030

Focus on France, Spain, Brazil with AI, tech, data expansion

Targets 25% market share in France, 20% in Brazil by 2030

Shares down more than 4% after reported 2025 profit drop

Adds comment, details from news conference throughout

By Dominique Vidalon

PARIS, Feb 18 (Reuters) - Carrefour CARR.PA aims for 1 billion euros ($1.18 billion) in annual cost cuts as part of CEO Alexandre Bompard's new plan to boost profits and market share in France, Spain and Brazil, Europe's largest food retailer said on Wednesday.

Bompard, presenting his third strategic plan since taking over as chairman and CEO in July 2017, said Carrefour was adopting a new approach, 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. The retailer's operating profit margin has declined since the 2020 pandemic.

"What's at stake now is to execute the plan well and quickly," Bompard said.

The group is planning price cuts, offset by savings achieved through the expansion of its franchise model in France, as well as increased use of AI, data and technology, including a partnership with tech specialist Vusion to digitalise its supermarkets and hypermarkets in France.

     Carrefour's shares were down more than 4% by 1107 GMT after the group reported a decline in last year's operating profit late on Tuesday.

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 over the 2026-2028 period.

     "Whilst 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 said.

FOCUS ON GROWTH AND PROFITABILITY

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

The company will aim for annual capital expenditures of 1.8 billion at the start of the plan in 2026, rising towards 2.0 billion 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 begun 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 business Atacadao SA CRFB3.SA, also known as Carrefour Brazil, and refinanced its Brazilian debt.

Under the new plan, Carrefour said it was targeting a 25% market share in France against roughly 22% now, as well as a 20% market share in Brazil by 2030, and will aim to strengthen its number-two position in Spain.

This would be achieved through organic growth but selective acquisitions in France and Spain could not be ruled out, Bompard said.

$1 = 0.8448 euros)

 (Reporting by Dominique Vidalon;
Editing by Sudip Kar-Gupta, Tomasz Janowski and Jane Merriman)

 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net/))