Carrefour Asserts Confidence Amid Shareholder Concerns and Trade Union Discontent
CEO Alexandre Bompard defends the company's franchise model and competitive strategy during the annual general meeting.
During Carrefour's annual general meeting on May 28, 2025, CEO Alexandre Bompard expressed confidence in the company’s operations and strategic direction despite ongoing concerns from shareholders and trade unions.
Bompard emphasized the success of Carrefour's franchise model, which he described as a cornerstone of their competitive strategy in the retail sector.
The meeting comes during a challenging economic backdrop in France, where recent data indicates a sluggish growth rate.
The National Institute of Statistics and Economic Studies (INSEE) reported a mere 0.1% increase in GDP for the first quarter of 2025, following a similar decline in the previous quarter.
The French government maintains a growth projection of 0.7% for the year, although the European Commission has adjusted its expectations down to 0.6%.
The first quarter’s economic slowdown poses challenges to the French government as it prepares the 2026 budget, with a projected €40 billion fiscal gap.
This situation raises concerns about public deficit levels, which are expected to hover around 5.6% of GDP in 2025 and 5.7% in 2026, positioning France last among eurozone economies in terms of deficit management.
Authorities aim to bring the deficit below 3% by 2029.
Household consumption has contracted by 0.2% during the first quarter, contrasting with a slight increase of 0.1% in the previous quarter, with significant declines in sectors like automobile purchases.
Total investment levels remain stagnant, and domestic demand has negatively impacted GDP growth, contributing a point of decline amid a 1.8% drop in exports, especially in transportation equipment, with imports rising by 0.5% driven by energy costs.
Despite the downturn in consumption, household purchasing power registered a 0.1% increase in the first quarter, with disposable income rising by 0.8%.
However, the household savings rate increased to 18.8%, suggesting a tendency towards financial caution among consumers, even in an environment of falling inflation rates, which dipped below 1% year-on-year since February.
Furthermore, issues at other large corporations, including ArcelorMittal, have brought attention to economic disparities.
The company recently initiated layoffs amid anxieties surrounding its operations in France while simultaneously planning a substantial investment in acquiring the Boston Celtics NBA franchise, raising questions about corporate priorities during a social restructuring phase.
This multifaceted economic landscape is underscored by mixed signals, as the outlook remains uncertain not only for Carrefour but for broader consumer sentiment in France and across the eurozone.
Bompard emphasized the success of Carrefour's franchise model, which he described as a cornerstone of their competitive strategy in the retail sector.
The meeting comes during a challenging economic backdrop in France, where recent data indicates a sluggish growth rate.
The National Institute of Statistics and Economic Studies (INSEE) reported a mere 0.1% increase in GDP for the first quarter of 2025, following a similar decline in the previous quarter.
The French government maintains a growth projection of 0.7% for the year, although the European Commission has adjusted its expectations down to 0.6%.
The first quarter’s economic slowdown poses challenges to the French government as it prepares the 2026 budget, with a projected €40 billion fiscal gap.
This situation raises concerns about public deficit levels, which are expected to hover around 5.6% of GDP in 2025 and 5.7% in 2026, positioning France last among eurozone economies in terms of deficit management.
Authorities aim to bring the deficit below 3% by 2029.
Household consumption has contracted by 0.2% during the first quarter, contrasting with a slight increase of 0.1% in the previous quarter, with significant declines in sectors like automobile purchases.
Total investment levels remain stagnant, and domestic demand has negatively impacted GDP growth, contributing a point of decline amid a 1.8% drop in exports, especially in transportation equipment, with imports rising by 0.5% driven by energy costs.
Despite the downturn in consumption, household purchasing power registered a 0.1% increase in the first quarter, with disposable income rising by 0.8%.
However, the household savings rate increased to 18.8%, suggesting a tendency towards financial caution among consumers, even in an environment of falling inflation rates, which dipped below 1% year-on-year since February.
Furthermore, issues at other large corporations, including ArcelorMittal, have brought attention to economic disparities.
The company recently initiated layoffs amid anxieties surrounding its operations in France while simultaneously planning a substantial investment in acquiring the Boston Celtics NBA franchise, raising questions about corporate priorities during a social restructuring phase.
This multifaceted economic landscape is underscored by mixed signals, as the outlook remains uncertain not only for Carrefour but for broader consumer sentiment in France and across the eurozone.
