Carrefour Shares Rise After Selling Loss-Making Business

In a bold and strategic move, Carrefour shares rise following the announcement that the French retail giant has sold its loss-making business in Italy. The market responded positively to this news, with investors interpreting it as a sign that Carrefour is focusing more on profitability and operational efficiency. This marks a significant turning point for the company, which has faced challenges in several European markets over the past decade.

This article breaks down what the deal means for Carrefour, how it has impacted the company’s financial standing, and what investors can expect moving forward.

A Turnaround Moment: Carrefour Shares Rise Amid Restructuring

For years, Carrefour struggled in Italy — a market that never truly delivered profitable growth for the company. High competition, low margins, and logistical inefficiencies led to continuous losses in its Italian unit.

On July 25, 2025, Carrefour officially announced that it had sold its Italian operations to the retail group Conad, Italy’s second-largest supermarket chain. The deal includes all hypermarkets, supermarkets, and convenience stores operated under Carrefour Italy.

The reaction from the market was immediate and strong. Carrefour shares rose by 6.2% on the Paris Stock Exchange by the end of the trading day. Analysts and investors welcomed the move, calling it a long-overdue decision that would allow Carrefour to concentrate on its core profitable markets.

Why Carrefour Sold Its Italian Business

1. Persistent Losses in Italy

Carrefour entered the Italian market in the 1990s with big hopes. However, despite numerous strategic overhauls, the company never achieved sustainable profitability there. High labor costs, low customer loyalty, and fierce competition from local brands kept margins razor-thin.

According to Carrefour’s 2024 annual report, the Italian division reported an operating loss of €170 million, which was a significant drag on the group’s overall performance.

2. Tightening Operational Focus

Carrefour CEO Alexandre Bompard has been steering the company through a transformation journey since 2017. His strategy includes reducing exposure to unprofitable markets, boosting online sales, and increasing focus on emerging economies and digital innovation.

By shedding the Italian business, Carrefour sends a strong message: the focus is now on profitable growth. The sale will allow the company to reallocate resources to high-growth markets such as Brazil, Romania, and e-commerce ventures across Europe.

3. Improved Balance Sheet and Cash Flow

While financial details of the deal with Conad were not fully disclosed, insiders suggest Carrefour will receive close to €700 million in cash and relief from further capital expenditure commitments in Italy. This significantly boosts its balance sheet health and allows it to invest in technology, store refurbishments, and supply chain improvements in other markets.

What This Means for Investors

Positive Short-Term Market Sentiment

The immediate impact of the announcement was clear in the markets. The 6.2% jump in share price added nearly €1.2 billion to Carrefour’s market capitalization overnight.

Investor confidence was further bolstered by positive statements from major financial institutions. BNP Paribas upgraded Carrefour from “Neutral” to “Outperform,” citing improved earnings potential following the divestiture.

Long-Term Strategic Value

Experts believe this move will have lasting positive effects. Here’s why:

• Increased Profit Margins: Removing a consistently loss-making unit will naturally boost the company’s net income margins.
• Reinvestment Potential: Freed-up capital can now be channeled into Carrefour’s successful operations in France, Spain, and Latin America.
• Better Focus: Carrefour can focus on its core strengths — strong private labels, fresh food logistics, and digitization — instead of stretching its management resources thin.

Industry Reaction: Is This the Start of a Trend?

Carrefour is not the first retail giant to exit the Italian market. In recent years, Auchan also sold its Italian operations, citing similar reasons. The tough retail landscape in Italy makes it a high-risk, low-reward market for international players.

According to a 2024 report by McKinsey & Company, the Italian grocery market has become increasingly localized, with domestic players like Esselunga and Conad capturing over 60% of the market share.

With Carrefour now joining the list of foreign exits, analysts suggest that other multinationals with underperforming European divisions may follow suit. This could signal a broader restructuring wave in the European retail industry, where focus will shift from geographical presence to profitability.

Carrefour’s Road Ahead: What’s Next?

1. Focus on High-Performing Markets

With Italy off the books, Carrefour is expected to strengthen its presence in France, its home market, and other high-performing countries like Belgium and Spain.

In Brazil, Carrefour has become the second-largest retailer after acquiring local chains and investing heavily in logistics and warehousing. The company sees enormous potential in the Brazilian middle class and aims to expand further in Latin America.

2. Emphasis on Digital and E-commerce

Carrefour is also doubling down on its digital strategy. In 2025, the company announced a partnership with Google Cloud to implement AI-based demand forecasting, smart inventory systems, and customer behavior analysis.

Its e-commerce arm, Carrefour.fr, has seen 40% year-over-year growth, fueled by grocery delivery services and a robust mobile app experience. The divestment from Italy provides additional capital and bandwidth to accelerate this growth.

3. Sustainability Goals

Another key area of investment is sustainability. Carrefour aims to reduce its carbon footprint by 30% by 2030. The sale of the Italian business also helps streamline operations and reduce emissions linked to long-distance logistics and underperforming store formats.

Public and Employee Reaction

Positive Outlook from Investors

Social media and financial forums buzzed with positivity following the announcement. Many retail-focused investors praised Carrefour for finally cutting losses and making a strategic, rather than emotional, decision.

Employee Concerns in Italy

The only potential downside comes from employee concerns. Carrefour Italy employed over 7,000 people, and although Conad has assured continuity of employment, labor unions are closely watching the transition to ensure no layoffs occur post-acquisition.

Carrefour’s spokesperson confirmed that the company is working closely with Italian labor groups to ensure a smooth and fair handover of employee contracts.

Expert Opinions on Carrefour’s Move

Several retail and financial analysts have weighed in on the sale.

• Marie Dupont, Retail Analyst at Société Générale:
  “This is a win-win. Carrefour offloads a burden, and Conad strengthens its market share. Carrefour shares rise now, but the real reward will be long-term stability.”
• Luca Ferraro, Italian Market Expert:
  “Foreign retailers have struggled in Italy for years. This isn’t a failure; it’s a smart pivot.”
• Carlos Medina, Emerging Markets Analyst:
  “Expect Carrefour to double down on Latin America and the Middle East. That’s where the future lies.”

Final Thoughts: Carrefour Shares Rise, but the Strategy Matters More

The rise in Carrefour shares is not just a temporary market reaction — it reflects a deeper investor belief in the company’s new direction. By shedding underperforming assets and doubling down on growth markets and innovation, Carrefour is positioning itself to remain a top player in the global retail landscape.

This move also sets an example for other global corporations: sometimes, growth doesn’t mean expansion — it means focusing on what works and letting go of what doesn’t.

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