Hit by poor sales, Carrefour sells stakes in Greece operations
Hit by falling sales, French retail giant Carrefour Friday announced plans to quit operations in Greece, just days ahead of a crucial election, and sell its 50 per cent stake in the supermarket chain to the local partner Marinopoulos, while focusing on expansion in Argentina, where business is brisk.
Greece is due to hold decisive parliamentary elections on Sunday after political parties couldn't agree on forming a coalition a month ago. Analysts say the outcome may decide whether Greece stays or quits the euro zone altogether.
Carrefour said after stake sale, for an undisclosed amount, it will take a mostly non-cash charge of 220 euros million ($278 million). The Marinopoulos will however continue the association as exclusive franchisee for not just Greece but also Cyprus, Bulgaria, Albania, and other Balkan countries.
The transaction will be completed in the coming weeks, providing anti-trust authorities approve it, Carrefour said.
The announcement coincided with Carrrefour's plans to acquire 129 supermarkets in Argentina.
In 2011, Carrefour's total sales in Greece fell 8.1% to 2.5 billion euros, while revenue from its Argentine business jumped 21% to 3.01 billion euros.
Last year the company posted sales declines in southern Europe, with Greece contributing substantially to it, as euro crisis and government austerity programs led to a contraction of consumer demand. Strong demand in emerging markets somewhat offset the bad news from Europe, Carrefour said in its annual report in February.
Source: Europe News.Net
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