Sad end! Closing of 123 stores and losses of more than 560 million; market near you

A famous market chain is having to close units due to the financial losses it has been accumulating in recent months.

A retail giant went through a challenging time in the last quarter of 2024, marked by the closure of 123 stores and a significant net loss of R$565 million.

This scenario contrasts sharply with the net profit of R$426 million recorded in the same period of the previous year, which ends up revealing a paradox.

The situation reflects a series of strategies adopted by the company to restructure its operations in the Brazilian market. Understand what is happening!

A very famous market chain is closing its doors in several cities. See if this will happen to you too! / Photo: Carrefour Group

Restructuring strategies and market impact

Initially, the decision to close unprofitable stores is part of a broad restructuring process. This movement is a response to operational difficulties and lower-than-expected performance in some locations.

In addition, Carrefour also announced plans to sell the properties of 40 of these 123 stores, seeking to generate additional cash to offset the financial impacts of the demobilization initiatives.

In short, this strategy aims to optimize the store network and improve operational efficiency.

Closing of several stores

Furthermore, the company announced that it is closing 123 points of sale that are not profitable, including 16 large supermarkets, 94 units of the Todo Dia brand and 13 establishments of the National and Bom Price lines, as part of a broad reorganization strategy, particularly focused on integration with the Big group.

Furthermore, the company decided to permanently close some large stores whose performance could not be improved.

Between October and December, the company had already deactivated 11 supermarkets and, by the end of January 2024, it had completed the closure of another 93 units, comprising 16 hypermarkets and 77 supermarkets, with the forecast that another 19 stores will be deactivated by the end of the second quarter.

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Efforts to improve the financial aspect of the market

The financial consequences of these closures and possible sales of properties were mostly recorded as "other expenses" in the quarter’s financial report, as explained by the company when announcing the divestment strategy.

In numerical terms, the efforts resulted in an adjustment of R$524 million related to the depreciation of the value of real estate assets and other extraordinary expenses, in addition to R$327 million in costs associated with the store closing process, which included both the reduction of stock price and expenses with compensation and contractual termination.

These adjustments and costs are related to the process of deactivating or selling the 123 stores we mentioned, as well as other units scheduled to close in the first half of the year. As of January, for example, 104 stores had already closed.

Challenges and future perspectives

The retail market is dynamic and challenging, requiring companies to constantly adapt and innovate.

In this way, Carrefour, one of the leaders in the sector, faces the challenge of reversing the current scenario and returning to a path of growth and profitability.

The expectation is that the measures adopted by the company, including the closure of unprofitable stores and the sale of properties, will contribute to a gradual recovery.

Finally, the focus is on strengthening profitable operations and exploring new market opportunities, aiming for more robust performance in the coming periods.

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