UPDATE: Carrefour Hypermarket Executive Guy Yraeta To Leave Co
November 03 2009 - 3:29PM
Dow Jones News
French retail giant Carrefour SA (CRERY, CA.FR) executive
committee member Guy Yraeta, head of the company's European
operations outside of France and who was spearheading efforts to
revamp the company's hypermarket stores, is leaving the company,
according to an internal document seen by Dow Jones Newswires.
A Carrefour spokeswoman confirmed Yraeta's departure but
declined to comment on his possible replacement.
Yraeta, who has worked for the company for 33 years and who was
also in charge of the company's hypermarket-restructuring project,
is the second person working on the company's hypermarkets to leave
in less than a month.
Chief Financial Officer Pierre Bouchut in October said the
company had decided to replace the head of the French hypermarket
business, Alain Souillard, with Guillaume Vicaire, who currently
heads the company's Turkish operations, for reasons "you can read
in the figures," and to improve the performance of the sprawling
out-of-town stores. Bouchut's comments came after the company had
reported 7% drop in French hypermarket sales over the third
quarter.
Revamping the oversized, box-like stores that sell everything
from groceries to television sets is key to Chief Executive Lars
Olofsson's efforts to turn around the group. He joined Carrefour
from Nestle SA (NSRGY, NESN.VX) earlier this year with the mandate
of reviving the retail giant, which has suffered from slumping
consumption on its home front, in France and in Europe. The
company's hypermarkets face competition from smaller, specialty
stores in urban settings.
Carrefour will review proposals for its hypermarkets by the end
of the year before deciding what model to adopt and begin
implementing next year.
According to the document, until Yraeta's replacement is
appointed, managers in charge of operations in Belgium, Italy,
Spain and Poland will report directly to CEO Olofsson; Philippe
Broianigo will head the hypermarket-revamping project.
Guy Yraeta couldn't be reached for comment.
Separately, an Indonesian court Tuesday ordered the retailer to
sell its stake in PT Alfa Retailindo (ALFA.JK) and pay a $2.5
million fine for violating the country's anti-monopoly rules.
Carrefour shares closed up 1.2% at EUR29.80 Tuesday. The stock
is up 8% year-to-date but down 11% from year-ago levels.
-By Mimosa Spencer, Dow Jones Newswires; +33-1-40-17-17-73;
mimosa.spencer@dowjones.com