frances carrefour revamps operations with job cuts china deal
Last Updated : GMT 07:25:12
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 07:25:12
Arab Today, arab today

France's Carrefour revamps operations with job cuts, China deal

Arab Today, arab today

Arab Today, arab today France's Carrefour revamps operations with job cuts, China deal

France’s Carrefour group said on Tuesday it is overhauling its business in a transformation plan involving
Paris - Arab Today

France’s Carrefour group said on Tuesday it is overhauling its business in a transformation plan involving thousands of job cuts, a product revamp and new partnerships in China.

  frances carrefour revamps operations with job cuts china deal

 

Carrefour, which was the world’s second-biggest retailer at the start of the century after US giant Wal-Mart, has since slipped to ninth position, according to the Deloitte consultancy, having been overtaken by the likes of Amazon and Costco.

“Carrefour has not sufficiently developed with its customers,” CEO Alexandre Bompard told a news conference.

Some 2,400 jobs will be cut in Carrefour’s French operations via voluntary redundancies, the group announced

Many of the cuts will be made at Carrefour’s 12 French headquarters, which total 10,500 employees and are, according to Bompard, staffed “out of proportion” compared to its competitors.

‘Vigilant’ government

The job cuts move immediately drew a warning from the French government. Finance Minister Bruno Le Maire told reporters in Brussels that “the government will be very vigilant concerning support for each staff member in the plan announced by Carrefour”.

Unions quickly lodged their protest, and Force Ouvriere, the union at Carrefour, issued a strike call for February 8.

The retailer’s product mix is to be redirected towards more organic produce, with a target of increasing sales in that segment almost fourfold by 2022, it said.

“We must revamp our model, by simplifying our organisation, opening ourselves up to partnerships, improving our operational efficiency, investing in our growth formats, building an efficient omnichannel model and developing our fresh and organic products offer, notably under the Carrefour brand,” Bompard said in the statement.

The group said it will also accelerate its online development, aiming for a 20-percent market share in French online food sales, and open at least 2,000 new neighbourhood outlets in its French home market in coming years.

Carrefour is hoping for 2 billion euros ($2.45 billion) dollars of annual savings from 2020 onwards thanks to the restructuring as it streamlines logistics and overheads.

Bompard said the group would sell 500 million euros worth of non-strategic assets over the next three years.

None of the group’s hypermarkets in its traditional outlet network would be shut down, he said, but some would be leased out.

Separately, Carrefour also said it had signed a deal with Chinese internet giant Tencent and supermarket group Yonghui which will take a minority stake in Carrefour’s Chinese subsidiary.

“The potential investment will leverage Carrefour’s global retail knowledge with Tencent’s technological excellence and Yonghui’s operational know-how and in particular its deep knowledge of fresh products,” Carrefour said.

‘Worn out’

Stock market investors took an instant liking to Carrefour’s announcements, pushing the retailer’s shares around 5.5 per cent higher in morning trading on the Paris bourse, where the benchmark CAC 40 index stood barely 0.2 per cent higher.

Analysts at Aurel BGC welcomed the plan, saying it was aimed at relaunching the retailer which is “worn out from years of strong competition and the rise of digital”.

Investors also hailed Carrefour’s project to invest 2.8 billion euros in its online activities over the next five years.

Carrefour operates 12,300 outlets globally and employs nearly 375,000 people worldwide, including 115,000 in its French home market where it generates nearly half of its overall sales

Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

frances carrefour revamps operations with job cuts china deal frances carrefour revamps operations with job cuts china deal

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 15:21 2018 Wednesday ,12 December

Israeli forces arrest 16 Palestinians in West Bank

GMT 09:13 2017 Wednesday ,09 August

Fati Jamali intensifies her drama activities

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 12:43 2015 Friday ,28 August

Jared Leto cuts his green Joker hair

GMT 12:20 2018 Saturday ,20 October

Russian defense minister arrives in Singapore

GMT 09:02 2013 Thursday ,01 August

Amanda Seyfried sexy in Givenchy

GMT 15:02 2015 Sunday ,06 December

Microsoft founder Bill Gates to visit Kuwait Monday

GMT 13:46 2013 Monday ,08 July

Akkaoui 2nd in Saint-Denis

GMT 12:00 2018 Tuesday ,30 October

Angela Germany's Merkel to step down in 2021

GMT 17:52 2016 Wednesday ,08 June

Pakistan witnesses 80% decline in suicide attacks

GMT 22:12 2016 Wednesday ,16 November

Ambassador to Belgium receives Bahraini women delegation

GMT 11:05 2016 Saturday ,24 December

'Prepared for comeback after ban'

GMT 09:28 2015 Saturday ,15 August

d3 to showcase UAE’s emerging creative talent

GMT 14:28 2017 Monday ,02 January

Lindsay urges world to do more for refugees

GMT 22:53 2017 Friday ,20 January

New UN chief to focus more on conflict prevention
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday