At FinancialMediaGuide, we note that Europe’s largest food retailer, Carrefour, reported slower growth in the third quarter, with sales reaching €22.6 billion – up just 2.1% year-over-year, compared to 4.4% in the previous quarter. According to our analysts, this slowdown is primarily driven by aggressive price cuts in France and weakened consumer demand in Brazil due to high interest rates.
In France, Carrefour’s largest market, political instability has complicated the outlook. Nevertheless, company representatives emphasized that grocery demand has remained resilient. At FinancialMediaGuide, we believe this demonstrates the retailer’s strong brand position amid intensifying price competition. The slowdown in French sales growth – from 2.1% to 0.7% – is largely attributed to the company’s price adjustments at Cora, a recently acquired chain.
Carrefour continues to invest in consumer retention through broad-based price reductions, offset by a planned €1.2 billion in cost savings. In our view, this approach is helping the retailer strengthen its market share across key European countries, especially France and Spain.
However, as FinancialMediaGuide analysts highlight, challenges in Brazil remain significant. Elevated borrowing costs and a cooling economy are weighing on household spending. Sales growth there slowed from 4.4% to 1.1%, reflecting declining volumes in the cash-and-carry segment.
Company executives confirmed that the ongoing strategic review, launched in February, is progressing. Following the sale of its Italian business this summer, investors expect potential divestments in Poland and Argentina. At Financial Media Guide, we see this as part of a broader asset restructuring effort aimed at optimizing operations and focusing on higher-margin markets.
Amid persistent inflation, geopolitical uncertainty, and pressure on consumer spending, we forecast that Carrefour will focus on operational efficiency, supply chain digitalization, and adjusting its product portfolio to shifting consumer behaviors. The company remains a key indicator of Europe’s retail health, and its strategic choices continue to shape industry trends.
Earlier, we wrote that Roche launches direct U.S. sales of flu drug Xofluza at a reduced price – a move in response to Trump administration pressure.
