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Private Label Strategy Boosts Carrefour, Analyst Notes

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Private Label Strategy Boosts Carrefour, Analyst Notes! Carrefour is making a smart move by focusing its labels on individuality, and it’s really working for them. Industry analyst Joe Dawson from GlobalData shared his thoughts as Carrefour announced a 4.7% increase in sales at home.

Private Label Strategy Boosts Carrefour

He pointed out that Carrefour’s food sales in France jumped 6% for the year, balanced by declines in other sectors as people spend more on necessities This increase in food sales? This is largely due to Carrefour pushing for its own branding. In fact, these products now account for 36% of their food sales, up from 33% at the end of last year.

Carrefour is not shy about calling out other companies for price increases, such as in its recent dispute with PepsiCo. This bold move also looks good for its brand value.

In terms of its ambitious plans, Carrefour aims to achieve 40% of its own-brand food sales by 2026 as part of its Carrefour 2026 strategy. Dawson praised the retailer’s strategy, pointing to their competitive pricing, cost focus and digital growth, which led to a 26% increase in online sales, to €5.3 billion

Despite inflation challenges in early 2023, Carrefour is on solid ground as 2024 moves on. They have strong cash flow and are hitting dividends, which means they are doing very well.

In Europe, Spain is standing out for Carrefour, especially when they bought forty-seven shops from El Corte Inglés, marking their ambition to grow greater within the location.

In other words, Clive Black from Shore Capital mentioned that Carrefour is getting smarter with its investments, specialising in what is actually crucial, and dealing with its expenses and investments nicely. Even though their running profits had a mild dip, they may be increasing their dividends, shopping for back stocks, and decreasing their debt.

Black additionally reflected on how big grocery chains have shifted their strategies. They’re no longer looking to unfold out all around the globe; however, they are specializing in being competitive and making the most out of their domestic markets, with some additional activities overseas when they gain experience.

Read about: The Rise of Private Label: How Retailers are Changing the Game

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