Acquisition
Carrefour to Sell Romanian Unit to Paval Holding for €823M
•February 18, 2026
0
Participants
Why It Matters
The margin upgrade and cost discipline aim to restore profitability and protect market share in highly competitive European and Brazilian grocery sectors, influencing investor sentiment across the retail industry.
Key Takeaways
- •€1 bn cost cuts target higher margins.
- •Focus on France, Spain, Brazil core markets.
- •AI and franchise model drive efficiency.
- •Aim 3.2% margin by 2028, 3.5% by 2030.
- •Asset sales fund modernization and Brazil expansion.
Pulse Analysis
Carrefour, Europe’s largest food retailer, announced a refreshed strategic plan aimed at reversing a multi‑year decline in operating margins. After the pandemic, the French‑based group’s margin slipped to 2.6 % in 2025, prompting CEO Alexandre Bompard to set ambitious targets of 3.2 % by 2028 and 3.5 % by 2030. The plan concentrates on the company’s three core markets—France, Spain and Brazil—where it seeks to defend market share against aggressive discount rivals while navigating weak consumer spending and operational resilience.
To fund the margin upgrade, Carrefour will trim €1 billion in annual costs and boost efficiency through an accelerated franchise model in France and expanded use of artificial intelligence, data analytics and automation. Capital expenditures are slated at €1.8 billion in 2026, rising toward €2 billion by 2030, focused on store modernisation and targeted expansion in Brazil. The retailer is also monetising non‑core assets, having sold its Italian business and agreed to divest the Romanian unit for €823 million, freeing cash for the transformation and strategic partnerships.
Analysts view the plan as a necessary pivot, but remain cautious given Carrefour’s share price is down 29 % since Bompard took the helm and consumer confidence remains fragile. If the company can achieve its 25 % French market‑share ambition and 20 % share in Brazil by 2030, it could solidify its No. 2 position in Spain and generate the €5 billion net free cash flow target for 2026‑2028. Success would signal that legacy retailers can reinvent themselves through technology and disciplined cost management, a trend likely to reshape the European grocery landscape for shareholders.
Deal Summary
Carrefour announced plans to sell its Romanian unit to Paval Holding for €823 million, as part of its strategic refocus on core markets. The deal was disclosed in a statement on Feb 18, 2026.
Article
Source: The Business Times (Singapore) – Companies & Markets
Carrefour CEO eyes higher profits under core markets refocus
Retailer aims for 3.2% operating margin by 2028 and 3.5% by 2030
Published Wed, Feb 18 2026 · 03:22 PM
[PARIS] Carrefour aims for one billion euros (S$1.5 billion) in annual cost cuts as part of CEO Alexandre Bompard’s new plan to boost profits and refocus on its core markets of France, Spain and Brazil, Europe’s largest food retailer said on Wednesday (Feb 18).
While the group also plans price cuts, that will be offset by savings achieved through the acceleration of the franchise model in France, as well as increased use of artificial intelligence (AI) and data and technology in general.
Its shares were down over 4 per cent by 0810 GMT after the group reported a decline in last year’s operating profit late on Tuesday.
Ahead of an investor presentation later on Wednesday, Carrefour said that it aimed to raise its operating margin from 2.6 per cent in 2025 to 3.2 per cent in 2028 and 3.5 per cent in 2030 and targeted a cumulative net free cash flow of five billion euros over the 2026‑2028 period.
“While management may be finally on the right track, Carrefour will remain a show‑me story,” Bernstein analysts wrote in a note.
“You have to question why management are only just focusing on the core after 8 years in charge,” they added.
Bompard, who will detail his third strategic plan since taking over as chairman and CEO in July 2017, said: “Carrefour is adopting an ambitious new strategic plan today, radically focused on growth and improving profitability.”
He faces challenging conditions in the highly competitive core French market and weak consumer spending both in France and Brazil. Carrefour’s share price remains nearly 29 per cent down since the start of his tenure.
Carrefour’s operating profit margin has declined since the 2020 pandemic.
For 2026, Carrefour said that it was targeting more than 25 basis‑point growth in operating margin compared to 2025.
Carrefour noted that it aimed for annual capital expenditures of 1.8 billion euros at the start of the plan in 2026, rising towards 2 billion euros by the end of the plan in 2030.
Investments will focus on store modernisation, store expansion—particularly in Brazil—and innovation related to AI, tech, and data.
As part of a strategic review kicked off a year ago, Carrefour has been disposing of non‑core assets. It agreed to sell its Italian business in July and last week announced plans to sell its Romanian unit to Paval Holding for 823 million euros.
It also took private its Brazilian unit Atacadao, also known as Carrefour Brazil, and refinanced its Brazilian debt.
Under the new strategy plan, Carrefour said that it was targeting a 25 per cent market share in France and a 20 per cent market share in Brazil by 2030, and aimed to strengthen its No 2 position in Spain. (REUTERS)
0
Comments
Want to join the conversation?
Loading comments...