Carrefour Finalizes Deal With Belgium Unions In Restructuring Drive
July 02 2010 - 1:19PM
Dow Jones News
French retail giant Carrefour SA (CA.FR) Friday moved forward
with its restructuring plans in Belgium and said it has signed an
agreement with unions there.
"It took a lot of effort and determination to reach this
agreement, which is essential to maintain our business in the
country," said Carrefour Chief Executive Lars Olofsson.
Carrefour has been in negotiations with unions since February,
when it announced plans to restructure operations in the country,
cutting staff and shutting a number of stores.
The retailer will close 16 loss-making stores in the country at
the end of July. The agreement with unions will result in EUR25
million of labor-cost savings a year starting in 2011, the company
said.
Carrefour, the world's second-largest retailer after U.S.-based
Wal-Mart Stores Inc.(WMT), will also expand its franchise agreement
with the French retailer Mestdagh group, which will take over 16 of
Carrefour's supermarkets in Belgium. Mestdagh will also convert 69
supermarkets in the country to the Carrefour name.
The company has recently struggled to hold ground against local
competitors Delhaize Group (DEG) and Colruyt (COLR.BT).
Carrefour also said Friday it will invest EUR300 million in
revamping its hypermarket, supermarket and convenience stores in
Belgium.
Through the restructuring, Carrefour will reduce its number of
its hypermarket stores to 45 from 56 at the end of 2009.
-By Mimosa Spencer, Dow Jones Newswires; +33 1 40 17 17 73;
mimosa.spencer@dowjones.com
Colruyt Group NV (EU:COLR)
Historical Stock Chart
From Jul 2024 to Aug 2024
Colruyt Group NV (EU:COLR)
Historical Stock Chart
From Aug 2023 to Aug 2024