Carrefour net profit drops 74%

Paris French retailer Carrefour SA said Friday that net profit last year fell 74%, impacted by more than euro1 billion ($1.34 billion) in restructuring charges linked to shuttering stores in Italy and turning around its stalling French operations.

The world's second-largest retailer behind Wal-Mart Stores said that net profit in 2009 fell to euro327 million ($444 million) from euro1.27 billion in 2008.

Since new CEO Lars Olofsson took over last year, Carrefour has sought to gain market share in France, which accounts for 40% of sales, by slashing prices, promoting the brand, introducing a discount range and accelerating the conversion of stores to the Carrefour banner.

In Italy, it has withdrawn from the south, selling or closing six hypermarkets, to focus on the richer north of the country. It also sold its 20% stake in Italian retailer Finiper.

Olofsson said 2010 will remain challenging, but he hopes the changes will help Carrefour boost sales. But he expects the environment will remain tough. "I don't see any significant improvement in the short term," he said, in an Associated Press report.