Digital and data central as French retailer Carrefour speeds up turnaround

French supermarket group Carrefour on Tuesday, € 3 billion (3.47 million) between 2022 and 2026 to strengthen digital commerce expansion and increase profits in line with Boss Alexandre Bomper’s future strategic plans. I promised to spend $ 10,000).

E-commerce is the main driver of online push, as Europe’s largest food retailers aim to stay ahead of Amazon in grocery delivery and speed up ongoing turnarounds. -Boosted by Express Delivery and Innovative Services-Lamp-Upsizing Data and Retail Media, and Digitizing Financial Services.

“Digital will be at the heart of our next strategic plan by 2026. This is a great opportunity for Carrefour,” Bompard Chairman and CEO told investors on Group’s Digital Day.

By 1442 GMT, Carrefour shares were up 2.2% at € 15.70. However, when Bompard acquired it in July 2017, its shares were 30% below that level. He secured another three-year term in May.

Carrefour has spent € 2 billion on technology and digital expansion in the first stages of its turnaround plan since 2018, trebling food e-commerce activity in the process.

As a result of the new digital push, Carrefour has raised its total annual investment target to around € 1.7 billion. This is the € 1.5-1.7 billion cap given in early 2021.

“Now that the first successful transformation plan is nearing its end, we’re bringing Carrefour, a traditional e-commerce retailer, a digital retailer that puts digital and data at the heart of all its operations and value creation. I want to transform into a model. “

“Today, it’s very difficult for them to enter the food market, especially fresh food, and we have to find a model that they can’t replicate,” Bompard commented on the competition with Amazon.

Carrefour said the additional investment could triple the total value of e-commerce products (the total value of products sold) from 2026 to € 10 billion.

Digital forecasts an additional € 600 million in recurring operating profit in 2026 compared to 2021. “This will be minimal,” added Matthieu Malige, Chief Financial Officer.

Carrefour, in the later stages of its five-year turnaround plan, which began in January 2018, has two planned partnerships. This year did not fail-one in Canada One with Couche-Tard and Auchan from France.

Past digital initiatives ranged from strategic partnerships with Google to rapid grocery delivery service transactions with Uber Technologies.

Carrefour announced on Tuesday that it would set up a dedicated venture capital fund to allow it to acquire minority shares in companies involved in innovation and emerging technologies.