Posted 2/20/2024, 2:41:03 AM
Carrefour Commits $3B to Digital Revitalization Amidst Declining Growth Prospects
- Carrefour was once the world's 2nd largest supermarket but has lost significant market share due to lack of investment in digital trends and changing consumer demands
- The company has committed $3B to a new digital strategy to establish an omnichannel model by 2026, but past failures remain a concern
- Carrefour generates most revenue from mature European markets like France, with Brazil as the only major growth driver currently
- Financials have improved recently but profit margins keep declining amid rising competition and costs; levered free cash flow is positive but inconsistent and at very low margins
- Valuation looks attractive relative to peers but growth prospects are limited; stock price has seen little movement in 5 years and lost over 50% in past decade