Carrefour Divests Italian Supermarkets to NewPrinces for 1 Billion Euros

Paris: French retailer Carrefour announced a binding agreement with the Italian NewPrinces food group to sell its 1,188 Italian supermarkets for approximately one billion euros. The agreement marks a significant shift in Carrefour’s business strategy, as it aims to consolidate its presence in key markets across Europe and Latin America.

According to Ansa News Agency, the sale will pave the way for NewPrinces to relaunch the GS supermarket brand, which vanished from Italian streets following Carrefour’s entry into the market. The move indicates a strategic repositioning for both companies, with NewPrinces aiming to re-establish a familiar brand in Italy.

Carrefour’s recent performance in Italy has been challenging, with the company recording a decline in sales in 2024. The retailer reported a negative Recurring Operating Income of -67 million pounds and a Net Free Cash Flow of -180 million pounds during a particularly competitive economic period from 2020 to 2022.

The transaction encompasses all of Carrefou
r’s activities in Italy. It is anticipated to conclude before the end of the fiscal year 2025 and is expected to have an impact of -240 million pounds on the group’s treasury. This divestment will allow Carrefour to concentrate on strengthening its market position in other regions.