Business News | Leading French Supermarket Retailer Faces Up to €200 Million Hit from Riots, Looting
Get latest articles and stories on Business at LatestLY. A leading French supermarket retailer, Carrefour, has warned that riots, looting and curfews across France could cost it between €80 million and €200 million in operating income, forcing it to cut its annual earnings forecast amid disruptions to store operations, according to a Reuters report.
New Delhi [India], October 23 (ANI): A leading French supermarket retailer, Carrefour, has warned that riots, looting and curfews across France could cost it between €80 million (USD 90 million) and €200 million (USD 225 million) in operating income, forcing it to cut its annual earnings forecast amid disruptions to store operations, according to a Reuters report.
The retailer has lowered its outlook for 2026 adjusted earnings per share (EPS) to stable or slight growth, compared with its earlier forecast of growth in the high single digits. It also expects free cash flow to decline slightly compared with 2025.
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According to Reuters, around 50 stores were attacked during the first day of unrest, with several looted and damaged. The company said the damage was considerable, while employees and business partners faced distressing situations.
The unrest has disrupted trading at a critical time for the retail sector, as the fourth-quarter shopping period begins. Consumer confidence was already weak due to high fuel prices, and the ongoing disturbances have further affected customer footfall at stores.
The retailer's finance chief said the direct costs included stolen or destroyed merchandise, damage to stores and equipment, and losses arising from outlets being forced to close. The company also expects continued disruption in the coming weeks, with some stores operating for shorter hours because of curfews.
Reuters reported that many of the retailer's approximately 6,000 stores across France were closed in anticipation of further unrest, including on Sunday and Monday. The company did not disclose the total number of outlets shut.
Costs have also risen as stores strengthened security arrangements, including hiring external security guards. The retailer was among those significantly affected because of its extensive network of convenience stores in major cities such as Paris, Lyon and Marseille.
The company's chief executive called for improved security during the next round of planned protests on October 24, while acknowledging that further business disruption could not be ruled out.
The impact of the unrest has also prompted the retailer to reduce its investment plans in France. It lowered its capital expenditure forecast for 2026 to €1.6 billion (USD 1.80 billion) from €1.7 billion (USD 1.91 billion).
The company had been preparing to launch its Black Friday sales events in the coming days, adding to concerns over the timing of the disruption, Reuters reported. (ANI)
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