Europe’s largest retailer Carrefour private label has been rejuvenated during the past 12 months under the charismatic leadership of its Swedish boss Lars Oloffson, but recent poor results from the groups Belgian interests have clouded the picture somewhat.
The recent departure of Geert Uytterschaut, Carrefour’s director of hypermarkets in Belgium, came after 1st quarter results for 2010 showed it has slipped to third place behind rival chains Delhaize and Colruyt. After discussions with Carrefour Belgium’s CEO Gerard Lavinay, and intense speculation that the two men’s relationship had broken down, Uyttershaut fell on his sword.
Carrefour’s share of the Belgian supermarket trade dropped by 2.21% in the first three months of this year, leaving the group with 23.41% of the market after suffering its largest ever fall in numbers. To compound matters Carrefour Belgium’s director of purchasing, Olivier Langlet, has also left the company. Langlet, formerly director of purchasing, had been acting as the temporary director of marketing in more recent times.
It now appears that Carrefour Belgium is in need of a strong guiding influence as further doubts emerge over the danger of its share of the retail trade in the country shrinking further. Speculation in certain quarters has suggested it could possibly fall below 20%. With Delhaize firmly established as the leaders in this particular arena with a market share of 26.14%, and Colruyt intending to build on their newly acquired status as the best of the rest having risen to a mark of 24.1%, Carrefour Belgium has a fight on its hands to stop the rot.
It is not only Delhaize and Colruyt that Carrefour private label will have to contend with in Belgium, as changes in the retail sector there have mirrored those in other European nations. The rise of discount operators like Aldi and Lidl creates cause for even greater concern, and with the two German based companies already holding a combined share of 16.8% and planning further expansions, there can be little doubt that Carrefour Belgium desperately needs to broaden its appeal.
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