It is thanks to the rise in the cost of living, especially in food, that the French have returned to hypermarkets, whereas in recent years they have tended to move away from them. Carrefour, pioneer of the hyper concept launched 60 years ago, won nearly 500,000 new customers last year. If households come back to it, it is to track down the best prices, the cheaper private labels, and there too, Carrefour has benefited to the full: its private label now represents more than a third of its sales. The brand has also set up low price operations throughout the year. Result: Carrefour recorded more than a billion euros in profits last year, a record.
It must be said that the group has also greatly improved its margins. Carrefour has limited its references on the shelves, controlled its management and structural costs. When he arrived at the head of Carrefour six years ago, Alexandre Bompard found a group in decline. He cut in the workforce, launched a vast savings plan: one billion euros less in spending each year. This time, the boss promises not to touch the workforce – Carrefour remains the largest private employer in France with nearly 100,000 employees in France – but will continue to tighten the screw. Alexandre Bompard has also gone all out on digital.
Market share in low-cost stores
Abroad, Carrefour is also doing very well, especially in Latin America, where the brand is well established. For example, it achieved more than 11% of its turnover in Brazil last year where, moreover, the brand has planned to open new discount stores, those stores where the products are sold wholesale, on pallets.
What to expect for 2023? The group hopes to gain further market share by betting heavily on low-cost stores, precisely, including in France. But at the moment, between manufacturers, producers and major brands, it is the height of product price negotiations, and Alexandre Bompard is worried about the price increases demanded by manufacturers. Double-digit increases that he describes as “delusional” in times of inflation. As each sign jostles, the showdown is even more tense than usual.