Carrefour Italia posts 400 million euros losses over three year period | Progresiv

Carrefour's Italian arm recorded losses of 203 million euros last year, with the retailer reporting total losses of around 400 million euros in the three-year period from 2014 to 2016, reports Il Sole 24 Ore.

Last year, turnover at Carrefour Italia stood at 4.85 billion euros, down from 4.9 billion euros in 2015, with the retailer posting gross operating margin of 59 million euros (-21.7 million euros) and EBIT of -5.5 million euros.

However, a positive trend has been observed in the first half of 2017, with revenues rising by 2% to 2.72 billion euros.

Carrefour Italia’s network consists of 1,071 stores, of which 478 are directly owned. These are divided among the following units: SSC (57 hypermarkets), GS (over 402 supermarkets under the banner Market), and Diperdì (583 express stores). There are also 12 wholesale outlets (Docks Market and Gross Iper).

The supermarket segment is growing, +1.5% to 2.02 billion euros, as are neighbourhood stores, +3.6% to 731 million euros. Going in the other direction, however, are hypermarkets, -3.3% to 1.89 billion euros, and the wholesale channel, -15% to 194 million euros.

In January, Carrefour Italia announced a reorganisation plan involving 32 hypermarkets, with the Borgomanero and Trofarello hypermarkets being converted into Supeco discount stores. Around 620 job losses are also planned, but this process is still being negotiated with unions. (www.esmmagazine.com)