Carrefour to divest Rue du Commerce

Date : 11 November 2019

Carrefour has confirmed it has received a firm offer for its high-tech products-focused site Rue du Commerce.

Shopinvest proposes acquisition of Rue Du Commerce

Carrefour said it had received the offer from Shopinvest, an ecommerce group founded in 2011, for 100% of Rue du Commerce’s share capital. No financial details of the deal were disclosed. Carrefour said the proposal ‘will be submitted to the personnel’s representative bodies of Rue du Commerce and other usual conditions of realisation’.

Sale would focus ecommerce on grocery ranges

Carrefour acquired Rue du Commerce in 2015 to better compete online in the high-tech product area. However, as the retailer has cut the amount of selling space dedicated to the products in its hypermarkets, switching it to grocery ranges, the need to sustain the site has decreased. The need to focus capital expenditure in areas where it believes it can win, especially in grocery, supports the decision to sell Rue du Commerce as well.

Sale mirrors initiatives taken by other retailers

As competition rises in France more widely, so the sale could allow Carrefour to better target its investment in a smaller number of areas and help it differentiate itself from rivals. If completed, the sale of Rue du Commerce would mirror similar steps taken by other retailers who are looking to put a greater focus on their grocery operations.

Tesco, for example, closed its Tesco Direct web site in 2018, after concluding there was no prospect of profitability for the loss-making part of its business. Instead, the retailer chose to improve its in-store general merchandise offer and by creating a single point of access for Tesco's entire online offer: groceries, general merchandise and clothing.

 

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