Carrefour, Europe’s largest food retailer, has made an important decision to sell all of its supermarket stores in Italy. The buyer is an Italian company called New Princes Group, which works mainly in food and drinks. This sale is worth about one billion euros. It is a big step for Carrefour because the company wants to focus on its strongest markets and improve its business there.
Why Carrefour Decided to Sell Its Italian Stores
Carrefour has been operating in Italy for many years. It owns 1,188 supermarkets across the country, serving millions of customers. But despite having so many stores, the Italian business has not been doing well financially. Last year, Carrefour Italy lost 67 million euros. This was a serious problem because it hurt the company’s overall profits.
Because of these losses, Carrefour had to rethink its position in Italy. The company decided it would be better to sell its Italian supermarkets and use its money and efforts to grow in other countries where it is more successful. By doing this, Carrefour hopes to become stronger and more competitive in markets like France, Spain, and Brazil.
The deal is expected to finish by the end of September 2025, once the government and regulatory bodies give their approval.
What New Princes Group Plans to Do
New Princes Group is a big name in Italy’s food and beverage industry. The company sees this acquisition as a chance to grow its presence in the retail market. It plans to reopen the GS supermarket brand, which was popular in Italy before Carrefour came into the market and changed the brand.
New Princes also hopes to improve the stores by updating them and offering better products and services. They want to create a shopping experience that people will enjoy and want to come back to often.
How the Market Reacted
The announcement of the sale affected both companies’ stock prices. After the news, New Princes’ shares dropped by about 11.5% on the Milan Stock Exchange. Investors are worried that buying Carrefour’s Italian stores will increase New Princes’ debt and financial risks.
Still, the deal is seen as an opportunity for New Princes to become a bigger player in the Italian retail market. If the company manages the stores well, it could grow its business and make good profits in the future.
Challenges Ahead for New Princes Group
Taking over so many supermarkets is not an easy task. New Princes must work hard to keep the stores running smoothly while making improvements. They will need to invest money in store renovations, employee training, and marketing to win customers’ trust.
The company will also have to face strong competition from other supermarkets in Italy. Many international and local chains fight for customers, so New Princes must offer good prices, quality products, and excellent service to stand out.
Moreover, economic conditions in Italy, such as inflation and changes in consumer habits, could affect how well the supermarkets perform.
New Chapter in Both Companies for Growth
Carrefour’s sale of its Italian supermarkets to New Princes Group is a major development in European retail. Carrefour is taking a strategic step to focus on markets where it can grow stronger. Meanwhile, New Princes has a big chance to grow its retail business in Italy and bring back a beloved supermarket brand.
Both companies face challenges ahead, but this deal could benefit them if they manage it well. For shoppers in Italy, it means change is coming, and hopefully better shopping experiences in the near future.
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