Joe Dawson, a retail analyst at GlobalData, commented after Carrefour reported a 6.0% increase in food sales in France for the whole year, "which offset a decline in non-food sales, as consumers prioritized spending on essential products."

Thanks to Investments

This growth in food sales was largely driven by investments in private label, he added, noting that own-brand products now account for 36% of its food sales.

These have increased from 33% at the end of 2022, as well as "the public appeal. to remove brands that raise prices," thus strengthening the value proposition of own brands.

Private Label Distribution

One of the cornerstones of Carrefour's 2026 strategy is for private labels to represent 40% of food sales by 2026.

"A focus on being price competitive and offering the best value to its customers has paid off, as well as improvements to its digital strategy supporting a 26% online GMV growth to reach 5.3 billion euros," Dawson said of the retailer's performance.

"Against the backdrop of high inflation at the beginning of 2023, which somewhat tapered off throughout the year, Carrefour enters 2024 in a strong position, with strong cash flow generation and dividend growth indicating its excellent results."

He mentioned that among the European countries where Carrefour has a presence, Spain has been a highlight, with the recent acquisition of 47 supermarkets from El Corte Inglés "highlighting its plans for continued expansion in the region."

"Disciplined Capital"

Elsewhere, analyst Clive Black from Shore Capital noted that, despite market challenges such as inflation, Carrefour has become more "disciplined with capital, prioritizing what is important in a more refined market assortment, seemingly performing well.

In terms of cost focus and targeted investment, and thus, even with a modest decline in recurring operating income, the firm is increasing its dividends, engaging in a buyback, and paying down net debt.

"The days of major international retailers wanting to plant flags across the globe are long gone, the main priority for companies like Carrefour, Tesco, and Walmart being competitiveness and extracting cash flow from operations in their home markets, supported by several complementary external activities, where a strong market position is evident."