Carrefour is doing better in Latin America and Asia than at home in France. Across la Manche in England, retailing rival Tesco might learn from the French grocer's international shopping experience.
Carrefour and Tesco are similar. The French company has a market capitalisation of euro 23 billion, a couple of billion less than Tesco. Each is having trouble at a well-established large network of shops at home; each also sells in non-domestic continental European markets; and each has sizeable outposts further afield. While Carrefour is in Brazil, among other places, Tesco's position in South Korea is the eye-catcher.
Both have had serious problems, as investors can testify. Carrefour stock lost around three-quarters of its value between 2007 and 2012, while Tesco's operational and financial problems led to its share price more than halving between late 2011 and the end of 2014. They have both recovered somewhat, but Tesco has gained less than Carrefour.
Carrefour is further along on its recovery plan. Tesco is now going through a big strategic review. One option is to sell the South Korean assets, which might bring in as much as euro 5.5 billion. The goal would be to underpin, or sustain, the overall corporate turnaround. The big dollop of cash would definitely rub away worries about Tesco's leverage, and the sale might remove a management distraction from the central task of getting the core British business right.
Yet anyone who thinks it is impossible for a European retailer to manage a far-flung empire should consider Carrefour. First-half numbers published on July 31 showed stagnant sales and profit at home in France. Against that, Carrefour's emerging market performance - despite the deep economic woes evident in Brazil - looks as bright as a new pin. Carrefour's debt is coming down too.
In its presentation of half-year results, Carrefour acknowledged the struggle to execute on its broad international strategic agenda. But too much shrinkage brings its own problems. If Tesco decides to shrink back to the UK, it will have abandoned a possibly sustainable path to long-term growth.
Carrefour and Tesco are similar. The French company has a market capitalisation of euro 23 billion, a couple of billion less than Tesco. Each is having trouble at a well-established large network of shops at home; each also sells in non-domestic continental European markets; and each has sizeable outposts further afield. While Carrefour is in Brazil, among other places, Tesco's position in South Korea is the eye-catcher.
Both have had serious problems, as investors can testify. Carrefour stock lost around three-quarters of its value between 2007 and 2012, while Tesco's operational and financial problems led to its share price more than halving between late 2011 and the end of 2014. They have both recovered somewhat, but Tesco has gained less than Carrefour.
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Yet anyone who thinks it is impossible for a European retailer to manage a far-flung empire should consider Carrefour. First-half numbers published on July 31 showed stagnant sales and profit at home in France. Against that, Carrefour's emerging market performance - despite the deep economic woes evident in Brazil - looks as bright as a new pin. Carrefour's debt is coming down too.
In its presentation of half-year results, Carrefour acknowledged the struggle to execute on its broad international strategic agenda. But too much shrinkage brings its own problems. If Tesco decides to shrink back to the UK, it will have abandoned a possibly sustainable path to long-term growth.