November 14, 2017 / 11:54 AM / a year ago

Carrefour pushes back turnaround plan release to January

FILE PHOTO: The logo of France-based food retailer Carrefour is seen on shopping trolleys in Sao Paulo, Brazil July 18, 2017. REUTERS/Paulo Whitaker/File Photo

PARIS (Reuters) - French retail giant Carrefour (CARR.PA) said on Tuesday it had pushed back to Jan. 23 the presentation of its turnaround plan, saying it wanted to avoid disrupting its business over the Christmas season.

Alexandre Bompard, who took over as CEO of the world’s second largest retailer in July, had initially said he would announce a strategic plan before end-2017.

This was after Carrefour warned in August that its operating profit this year could fall by around 12 percent.

The delay is aimed at limiting employee disruption during the crucial Christmas season at Carrefour, France’s largest private sector employer.

It will also allow Carrefour to complete its full year 2017. The group will release fourth quarter sales on Jan. 17.

“December is a period when management must be mobilised on end of the year holidays and we also chose the date because we will have closed the 2017 chapter and can open a new one,” a Carrefour spokesman said.

The company is working on what is expected to be a far-reaching restructuring plan that some analysts estimate could involve one billion euros of cost cuts.

Carrefour shares are down 25 percent this year, underperforming a 6 percent decline in their European sector .SXRP.

Reporting by Dominique Vidalon, Editing by Sarah White

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