Monday 30 January 2012

New CEO Carrefour, hypermarket fix instead of breakup?

Carrefour has picked a retail veteran  with a solid track record in company restructuring, Georges Plassat as its next boss.
Plassat spent 14 years at French retailer Casino and two years at Carrefour Spain before joining Vivarte, a retail fashion chain in 2000. He also holds a stake of about 10 percent in Vivarte.
Global No2 Carrefour has been struggling for years, partly due to its reliance on hypermarkets, which have been losing out as time-pressed shoppers buy more goods locally and online, and prefer to purchase general merchandise from specialist stores.
Squashing speculation of possible breakup and sell-off of global businesses, Plassat may pursue an alternative strategy for the hypermarkets, like downsizing them, slashing prices to lure back cash-strapped shoppers who think that Carrefour products are too expensive and investing more in e-commerce
However, some think Plassat faces an uphill struggle and giant stores are out of touch in a world where you need to give shoppers a good reason to make that out of town trip.
The new move will be watched carefully by suppliers and competitors alike, not least of which Tesco, as it reconsiders the long term value of its superstores....

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