Colruyt Considers Selling French Stores
- The Colruyt Group, based in Halle, Belgium, announced Tuesday it is exploring "various strategic options" for its retail operations in France, including the possibility of a sale.
- The review encompasses the company's Colruyt Prix Qualité stores and DATS 24 filling stations located in France.
- Colruyt Group cited the highly competitive nature of the French food retail market as the primary driver for the strategic review.Despite ongoing efforts and investments aimed at improving...
Colruyt Group Considers Options for French Stores, Gas Stations
The Colruyt Group, based in Halle, Belgium, announced Tuesday it is exploring “various strategic options” for its retail operations in France, including the possibility of a sale.
French Operations Under review
The review encompasses the company’s Colruyt Prix Qualité stores and DATS 24 filling stations located in France. According to spokeswoman Hanne Poppe, the operations include approximately 100 stores and 40 gas stations, employing around 2,000 individuals. the French division generates over 700 million euros in annual turnover, according to the group’s latest annual report.
profitability Challenges in Competitive Market
Colruyt Group cited the highly competitive nature of the French food retail market as the primary driver for the strategic review.Despite ongoing efforts and investments aimed at improving profitability, the company stated in a press release that these efforts have not yet yielded sufficient results.
“The activities are not yet profitable,” the Colruyt Group stated. “The stores have a positive contribution, but the activities lack scale to achieve sufficient purchasing power and to cover overhead and logistics costs.”
All Options on the Table
The company emphasized that all strategic options remain open, including a potential sale or a recovery plan. While Colruyt Group acknowledged existing interest from potential buyers, it cautioned that “no decision has been made yet and no guarantee can be given that a transaction will eventually take place.”
commitment to Continuity and Employment
The Colruyt Group affirmed its commitment to ensuring the continuity of its French operations and maintaining a maximum level of employment throughout the strategic review process.
Long-Standing Presence in France
Colruyt Group has operated in France since 1996.Its wholesale activities, conducted under the name Codifrance since 2004, are not included in the current strategic review.