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By
Reuters
Published
Jun 8, 2015
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Carrefour boss says 'low cost' retail push a damaging trend

By
Reuters
Published
Jun 8, 2015

The push worldwide for a low cost model in retailing is a damaging trend, the head of France-based food retail group Carrefour said in an interview with the Journal de Dimanche newspaper.

Carrefour

"We have to be competitive. In all countries price is crucial," said Chairman and Chief Executive Georges Plassat, whose company has more than 10,000 stores across 33 countries in Europe, Asia and Latin America.

"But I say this: the systematic prioritisation of the low cost model and the never-ending hunt for cost reductions is destroying jobs and value."

Plassat was speaking ahead of the company's annual shareholders' meeting on Thursday. He also reaffirmed that the company has no intention of splitting the chairman and CEO roles.

Privately-held Germany-based discounters Aldi and Lidl have wooed customers with their low prices, putting pressure on big global retailers like Carrefour, Tesco and Metro.




 

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