PARIS — Reinforcing its presence in Spain, Carrefour has struck an agreement to purchase 172 Supersol grocery stores in a deal that carries an enterprise value of 78 million euros.
The retailer said it plans to convert them into its Express and Market formats as well as its discount format Supeco.
The stores, which are mostly in large, urban centers in the regions of Andalusia and Madrid, generated around 450 million euros in sales last year.
Carrefour said it plans to improve sales density and optimize costs of the stores thanks to its commercial policy and purchasing conditions, as well as use them as pick-up points for e-commerce sales.
Under the direction of chairman and chief executive officer Alexandre Bompard, over the past three years Carrefour has been racing to bulk up its digital means and omnichannel systems, drawing up partnerships with a number of external partners, including Google and food delivery companies in various markets like Uber Eats in France and Belgium.
It has also increased its offer of organic produce, reduced the size of its hypermarkets and focused on pricing strategy — competition is stiff among grocers in France, who often engage in price wars as they jostle for business in a lackluster market.
Excluding its home market of France, Europe is the largest market for Carrefour, which also has extensive operations in Brazil with the Atacadão chain. Carrefour’s last sizeable acquisition in Spain was the purchase of 36 Eroski stores in 2016.
The Supersol transaction, which remains subject to approval from regulatory authorities, is expected to close at the beginning of 2021.