Carrefour has unveiled a new 'discount' business plan entitled 'Carrefour 2026' that will see it reduce its range of branded products and focus more on marketing its own-brand alternatives.
According to the French supermarket chain's CEO Alexandre Bompard, who presented the scheme on Tuesday, Carrefour will attempt to increase the revenue of its own-brand products to 40% of total revenue by 2026 (compared to 33% today). This will see it reduce the availability of alternative branded products by approximately 20% across the board.
"Carrefour 2026 is a conquest plan designed to perform in markets hit by inflation and climate change," said Bompard in a statement. He explained that responding to these challenges requires the "strengthening and accelerated deployment of discount formats".
Bompard was also transparent about the fact that Carrefour 2026 will involve "significant staff reductions in each of our European headquarters".
- Carrefour tests grocery deliveries directly to your refrigerator
- Carrefour puts price freezes on 100 essential products
It is not yet clear how "significant" these staff reductions will be in Belgium, although a spokesperson for Carrefour Belgium alluded vaguely to planned "optimisations adapted to the situation of the Belgian market and the preferences of customers".
Carrefour claims that its new plan will lead to savings of approximately €4 billion over four years, allowing it to focus on expanding its reach in its two core markets, namely Europe and Latin America. The chain aims to open 2,400 stores in France and Brazil over the next four years.
If the scheme is successful, Carrefour also hopes to pay a sizeable dividend to shareholders this year, which it then plans to increase by at least 5% per year.