Carrefour Italia Focuses On Franchising And Italian Organic Products

By: Trademagazin editor Date: 2024. 11. 25. 09:07

Carrefour Italia is implementing a recovery strategy focused on franchising expansion and its Act for Food programme. This follows a disappointing summer and a 3.5% drop in first-half sales, to €2.06 billion, while third-quarter turnover is also expected to be weak.

The French retailer plans to restructure its retail network in Italy and expand its franchise model.

The number of directly managed hypermarkets will soon be reduced to four – in Pisa, Novara, Arma di Taggia and Lucca – while its Express franchise network (currently 900 of 1,200 stores, operated by 450 entrepreneurs) is set to grow by at least 50 new franchises annually.

Carrefour Italia CEO Christophe Rabatel expects the store network to be fully franchised within four years. He added that the Italian market is very competitive, with over 370 store banners.

E-commerce sales and exports of Carrefour’s Italian-sourced products (already €1.15 billion in 2022 – a 40% increase on 2021) are projected to increase significantly.

Act For Food Programme

Carrefour’s key challenge lies in the success of its Act for Food programme, launched in 2018, which prioritises high-quality, primarily Italian (80%), competitively priced organic products, aiming for market leadership in this segment.

Speaking during the presentation of the relaunch of the Act for Food programme, Rabatel said, “The drop in sales has forced the group to slow down the 2026 strategic plan, between investments and openings – and if the break-even point should still be reached, it is also true that this period of crisis was not expected. We will do everything to reach the set targets.”

He also announced that Carrefour Italia’s smaller-format Terre d’Italia store in Milan, featuring a premium private label, will not be replicated.

While showcasing the product line well, its performance hasn’t met expectations.

In contrast, the Carrefour Contact smaller store format has proved successful, with an 11th location now open and further expansion planned in Rome and Turin.

ESM