Carrefour France reduces sales area of its largest hypermarkets
According to reports in French newspaper Le Figaro, Carrefour France is going to reduce the sales area of its largest hypermarket in the country by 6,000 square metres. The hypermarket located in Portet-sur-Garonne (suburb of Toulouse), with a sales area of 25,000 square metres, is one of Carrefour's less profitable hypermarkets as its sales per square metre are lower by a third than the average for the 218 French hypermarkets. The larger the hypermarket, the weaker the performance appears to be. "It is no longer a model that customers are looking for," according to the retailer. The area for household goods, consumer electronics, books and DIY goods will be abandoned and will be either sold or rented to specialist chains. CEO José Luis Duran has already given his approval for a reduction of the sales area of seven further hypermarkets. Further reductions could occur thereafter. Carrefour Property is currently scrutinising Carrefour's 40 largest hypermarkets in France. All options are open including a reduction in the sales area, a reallocation of the sales area, or even an increase of the sales area. The only condition is that the new option creates more value.
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