Carrefour has indicated that the performance of the former Dia France stores that it has converted has been varied, with the operating losses relating to the stores amounting to between €50 million and €55 million.
Barclays European Food Retail Equity Research reported that while the conversion process of the stores will be completed by the end of the year, Carrefour management has 'hinted that performances of the converted stores are quite variable'.
Barclays noted that the 78 Dia stores that have converted to the new ‘Contact Marché’ banner, which tend to be in rural areas, are experiencing a mixed performance.
'This concept is a discount version of the traditional ‘Contact’ convenience store format offering a more limited assortment and prices on average 15% cheaper than at a typical Contact store,' it said.
'This concept was admittedly created specifically for the former DIA stores located in competitive catchment area. It might therefore take more time to draw conclusions on the performances of this new concept.'
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.
