Carrefour China’s improving operating profit

Date : 15 August 2018

Carrefour Asia’s executive director, Thierry Garnier, has highlighted how the retailer’s operating profit has improved in 2018. Garnier said the progress had been driven by its digital transformation, which has been aided by its strategic partnership with Tencent.

Partnership driving progress

Garnier pointed to Carrefour creating a strategic partnership in China with technology company Tencent. He said negotiations were continuing with supermarket operator Yonghui, which could lead to the latter investing in Carrefour China to help strengthen its overall operations.

Garnier went on to say further Carrefour Le Marche stores would be opened by the end of 2018, in Shenzhen, adding to the one already opened in Shanghai. As the more digitally-enabled Le Marche stores are rolled out, Carrefour China will look to extend its digital transformation to other stores and cities across the country.

China proving its worth as a testing ground

Garnier has previously said China is ‘the ideal location to develop new methods for attracting shoppers’, noting that the retailer was ‘very positive’ about its outlook in the country.

Speaking at Carrefour’s AGM its chief executive, Alexandre Bompard, noted the positive effect alliances were already having on its day to day operations. Bompard said the retailer’s digital commerce expansion was an ‘absolute priority’ given the growing competitive pressures in France and across Europe. The results from China will likely add weight to Bompard’s point of view and encourage Carrefour to see how it can use these alliances to support its operations globally.