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Retail

5 Key Takeaways From Carrefour’s 2022 Full-Year Results

By Steve Wynne-Jones
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Carrefour has reported a 16.1% increase in sales on a reported basis, and 8.5% growth on a like-for-like basis, in its 2022 financial year, with chief executive Alexandre Bompard hailing the French retailer's "remarkable performance" in an "unprecedented" inflationary environment.

"With the Carrefour 2026 plan, we are embarking on a new phase of conquest, with greater ambition in digital, the development of our discount offer and new social and environmental commitments," Bompard commented. "In 2023, Carrefour will continue to differentiate itself for the benefit of its customers and shareholders.”

Read More: Carrefour Eyes Further Profit Growth In 2023, Further Buybacks

Here are five interesting takeaways from this week's announcement:

1. 'Excellent Momentum' In France

Carrefour hailed what it described as 'excellent momentum' in its home market of France, with like-for-like growth reaching 3.4%. Food like-for-likes grew by 4.4%, while non-food decreased by 3.5%.

Carrefour said that it outperformed all French food retailers in terms of volume, ranking first in terms of market share gains. Notably, the group also noted that e-commerce in France grew by 13% last year.

2. Contrasting Performance in Europe

Carrefour reported a varying performance in the different European countries in which it has a presence. In Spain, the retail chain was able to grow its sales by +5.4% LFL, gaining a 0.3-point increase, although the business was impacted by a 'sharp increase' in energy costs. Italy reported LFL growth of +4.2%, which the group attributed to improved customer satisfaction.

However, sales in Belgium dropped slightly by -0.9% LFL, which Carrefour attributed to the highly competitive environment. On the other hand, the retailer maintained 'very positive momentum' in Poland and Romania, with LFL growth of +12.0% and +9.0%, respectively.

3. Rapid Development In Brazil

In its full-year statement, Carrefour said that it has made 'rapid' progress in integrating the former Grupo BIG into its operations in Brazil. As of the end of 2022, 59 stores had been converted to Carrefour banners, with the conversion plan expected to be completed in 2023.

The implementation of synergies is also proceeding according to plan, the group said, with Carrefour confirming its target of achieving R$2.0bn in synergies by 2025.

Full-year sales in Brazil were up 12.4% in 2022, while growth at constant exchange rates rose 33.1%.

Read More: Carrefour Brasil Closes 2022 With 91 New Stores

4. Private Label Paying Off

According to Carrefour, its priority focus on Carrefour-branded products and the ramping up of its Simpl entry-price range has been 'particularly appreciated' by customers. Carrefour-branded private-label products now account for over one-third of the group's sales, in line with its objective set out in the Carrefour 2022 plan.

The group has also launched several initiatives to support its customers amid price increases, such as '30 products for €30', and '100 prices frozen for 100 days' initiatives.

5. Digital Strategy Gains Momentum

Carrefour said that its digital strategy has 'continued to bear fruit', despite the slowdown in e-commerce across the industry. The group recorded a 26% increase in its online gross merchandise value (GMV) to €4.2 billion, which was a 'significantly faster pace' than in 2021.

This growth was particularly driven by Brazil, where e-commerce doubled over the year. Carrefour's retail media activity is also gaining momentum, with over 450 partner clients to date, it added.

© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Stephen Wynne-Jones Click subscribe to sign up to ESM: European Supermarket Magazine.

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