Mixed Fortunes For Carrefour And Auchan In Italy
Carrefour Italia ended the first half of 2016 with a 2.9% growth in revenues, above the market average of 0.33%, to €2.66 billion, reports Il Sole 24 Ore.
According to the Italian daily, the positive trend is the result of the long-term rationalization and growth strategies imposed by CEO Eric Max Uzan in 2013.
These included the sale of assets, reduction of retail space, concentration on North Italy and also acquisition of assets of retailers Billa and Lombardini.
Carrefour Italia operates 56 hypermarkets, 441 supermarkets (Carrefour Market), 583 neighbouhood stores (Carrefour Express) and 18 Cash&Carry outlets. Last year, the retailer had a 7% market share (6.5% in 2014) and a turnover of €4.9 billion (€4.61 billion in 2014).
Almost all segments saw revenue growth in 2015 – supermarkets earning €1.99 billion (€1.76 billion in 2014); hypermarkets with €1.81 billion (€1.77 billion); neighbourhood stores with €705 million (€660 million) and Cash&Carry outlets with €238 million (€251 million).
Elsewhere, Auchan Retail Italia ended 2015 with €4.08 billion in revenues and losses of €191 million. In the hypermarket segment, revenues were €2.08 billion (€2.48 billion in 2014) and losses €126 million (-€46 million); while in the supermarket segment revenues amounted to €1.99 billion (€2.02 billion) and losses to €65 million (-€98 million).
However, the partial results for 2016, indicate an improvement mainly due to the restructuring of the hypermarket channel.
In fact, the number of hypermarkets was reduced fom 50 to 48 in 2015 (Cinisello and Triggiano were closed), while retail space was reduced at Fiumicino and Bari Casamassima stores. The retailer attributes 60% of the drop in sales to reduced investments for promotion.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.