LONDON – Carrefour (CARR.PA) Europe’s biggest food retailer, has agreed to sell its loss-making business in Italy to food and drinks manufacturer NewPrinces Group (NWLF.MI) as part of a strategic review kicked off earlier this year.

The sale of Carrefour Italy, which operates 1,188 stores but made a 67 million euro ($78.85 million) operating loss last year, will help boost Carrefour’s growth, profitability and cash generation, the French-based retailer said in a statement.

The deal gives Carrefour Italy an enterprise value of around 1 billion euros, Italy-based NewPrinces Group said in a separate statement, and should close by the end of the third quarter subject to regulatory approval.

Carrefour also reported stronger second-quarter sales as price cuts helped to attract more inflation-weary shoppers particularly in France, its biggest market.

Overall, Carrefour’s second-quarter sales grew 4.4% on a like-for-like basis from a year earlier, building on 2.9% growth in the first quarter. In France, like-for-like sales returned to growth for the first time since 2023, up 2.1% compared to a year ago.

“Volumes declined at a historic rate after the wave of hyperinflation in 2022 and 2023, but we are seeing a gradual recovery in purchasing power, which is evidenced by volumes increasing [in the second quarter],” Chief Financial Officer Matthieu Malige told journalists on a call.

Carrefour plans to keep lowering prices in the second half as it tries to keep improving its competitive position, Malige added.

The group’s first-half sales totalled 46.559 billion euros, up from 44.863 billion euros a year earlier.

“Carrefour’s business saw a clear acceleration in the first half of 2025, driven by the momentum in its three core countries: France, Spain, and Brazil,” Carrefour CEO Alexandre Bompard said in a statement.

However, Carrefour’s profitability remained under pressure, with its first-half operating margin falling to 1.6% from 1.8% a year ago.

($1 = 0.8498 euros)

Author Credits- Helen Reid
Reuters