16 GB stores to close

20 June 2007

BRUSSELS (AP) – Carrefour SA, the world’s second-largest retailer, said Wednesday it would shut 16 of its GB stores in Belgium and cut 900 jobs.

The French-based company said it had to make changes to compete as the number of rivals grew and became more aggressive as hard discounters pushed into the market.

At the same time, wage costs were rising less than turnover, it said, and profitability had only increased slightly despite large investments.

“This situation can’t go on: the gap is becoming larger, it threatens the durability of the brand,” the company said.

Alongside its large own-name brand hypermarkets, Carrefour currently owns 78 GB supermarkets in Belgium and employs 5,502 people.

It said it would meet workers’ representatives to discuss voluntary redundancies for older workers and creating more part-time jobs.

Subject: Belgian news