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Jordan’s stability attracts foreign investments, says Majid Al Futtaim’s CEO

By - Nov 16,2022 - Last updated at Nov 16,2022

Majid Al Futtaim

AMMAN — The Kingdom's political and social stability has helped form an attractive business environment and encourage foreign investments in various fields, according to Hani Weiss, CEO of Majid Al Futtaim. 

Weiss, whose company owns and operates Carrefour throughout Jordan, told the Jordan News Agency, Petra, that the Kingdom has “succeeded” in protecting its appeal to foreign investors. 

Weiss attributed this success to His Majesty King Abdullah's ongoing directives in the sector, which have given rise to a regionally competitive investment environment, despite the pressures of global political unrest and the adverse impacts of the COVID-19 pandemic. 

He also praised Jordan's economic development resulting from ongoing economic reforms, noting that the economy will undergo "significant" improvement in the coming period, especially following the launch of the Economic Modernisation Vision, which will contribute towards making Jordan an attractive destination for foreign investment. 

The CEO also referred to the measures taken by the government to address the repercussions of the pandemic, noting the vital role these procedures played in re-energising foreign investment and ensuring its sustainability, advancing Jordan’s position among the most appealing Arab countries for foreign investment. 

In this regard, Weiss said that Carrefour dealt with the repercussions of the pandemic with a “high level of proficiency” to ensure the sustainability of its economic contribution to the Jordanian market.

As for the ramifications of global crises, and the Russian-Ukrainian war in particular, the CEO said that these challenges impacted Carrefour as much as they have impacted other brands, especially given that inflation has increased between 5 and 7 per cent. 

The CEO also shed light on Carrefour's renewable energy project. Using solar cells, the project already generates 17,000 megawatts of clean energy and powers 42 out of the company's 53 branches in the Kingdom. 

Fort McKay: Where Canada's boreal forest gave way to oil sands

By - Nov 14,2022 - Last updated at Nov 14,2022

A general view shows a Syncrude oil sands mining facility near Fort McKay, Alberta, on September 7. At Fort McKay near Fort McMurray in western Canada (AFP photo)

FORT MCKAY — The acrid stench of gasoline permeates the air. And the soot coats everything in sight: The trees, the bushes, even the snow in winter. And all day long, explosions send the birds soaring to safety.

At Fort McKay near Fort McMurray in western Canada, in the heart of the country's boreal forest, the pines and the people were long ago cleared out to make way for huge open-pit mines dedicated to excavation of oil sands.

It's one of the biggest industrial projects in the world: As seen from above, the zone is in stark contrast to the vast expanse of green surrounding it. Huge black holes are gouged in the brown earth — they are giant pools of water.

Then there is the network of roads on which hundreds of trucks drive every day, and the immense factories, with smoke spewing from wide chimneys.

On the ground, the noise is deafening. And it's quite a scene for the uninitiated: In the middle of the huge basins dug to capture the polluted waters stand huge metal scarecrows clad in helmets and security vests.

The ghoulish creatures are designed to scare away millions of migratory birds that arrive every year in this northern part of Alberta province. Adding to the mayhem: Airhorns that are used several times a minute.

The mines have made the people left in Fort McKay — many of them Indigenous Canadians — very rich. But the installations have also profoundly altered and damaged the land on which their ancestors relied for centuries.

"Everything has changed, everything's destroyed to me now," says 74-year-old Margie Lacorde who lives in the centre of town in a house chock full of knick knacks and framed photographs.

The talkative Lacorde, who belongs to the Metis people, is sad to see the parched, yellowing leaves due to drought, and wishes she could still swim in the rivers and gather berries in the forest like she did in her youth.

The hunting grounds are long gone — the land was sold for industrial use.

"The pollution is killing our nature," Lacorde tells AFP, though she herself worked in the oil industry for years to provide for her family.

She remembers her childhood with a significant bit of nostalgia. 

Back then, families gathered snow and melted it to use as drinking and cooking water. Such a thing would be impossible today — once the snow hits the ground, it's immediately filthy, covered in the dust that filters down from the factories.

 

'Desecrated' 

 

"We're First Nations and this is our territory that is all being desecrated by the oil industry for the sake of the dollar, money, prosperity," says Jean L'Hommecourt, an environmental activist who took up the fight her parents once championed.

Even if agreements were reached with Indigenous communities to create jobs and protect some natural resources, the ecological impact of mining the oil sands have been so great that the 59-year-old woman says her people are now at risk.

"I lost my prosperity when the industry came in and took over all our lands and our waters and our access to our wildlife... everything that we depend on to sustain our culture has been compromised by industry," she says bitterly.

The area is a far cry from the picture postcard ideal of the Canadian West. There are no crystalline blue waterways or fish-filled rivers here. 

Instead, Moose Lake — sacred to L'Hommecourt's Dene people — is now only accessible by all-terrain vehicle, a five-hour drive on a road pockmarked by potholes that runs in between the mines.

When she was growing up, L'Hommecourt's family cabin was in the middle of the forest, far away from the noise and bustle. But after the first oil sands mine was built in 1967, development proceeded at a rapid pace.

Today, the active oil sands extraction sites form a chain that is more than 60 kilometres long, hugging the shores of the Athabasca River. 

Fort McKay — population, 800 or so — is a tiny speck on a map of this industrial complex.

Canada is home to 10 per cent of the world's known crude oil reserves — much of that is found in the oil sands of Alberta.

Every day, nearly three million barrels of crude are extracted from the sands, according to official government data, helping to make Canada the world's fourth largest oil producer, and the primary exporter of crude to the United States.

In all, more than 4,800 square kilometres are used for oil sands mining.

At first, local populations were consulted and their fears were noted, L'Hommecourt says.

"And then they just said okay, well, we collected the information, we collected their concerns and everything else and we'll mitigate with the money," she added.

 

Pollution 

 

Many environmental activists say the impact of the oil industry is so great that the term "ecocide" is not too strong. Beyond the tangible destruction of the boreal forest, there is the massive amount of pollution in the air.

The oil and gas sector accounts for a quarter of Canada's greenhouse gas emissions, according to the latest official figures released this year. Of that total, the oil sands are responsible for 12 per cent.

And traces of other toxic emissions, such as sulfur and nitrogen oxides, have been detected in the soil and the snow dozens of kilometres from the mining zone.

The industry also consumes a massive amount of water, taken from nearby rivers and lakes.

"There's still a lot we need to do on recognising the harm from cleaning up existing operations," says Keith Stewart of the environmental pressure group Greenpeace, slamming companies that drag their feet on such matters.

Stewart nevertheless acknowledges a "huge shift" on protecting the environment in recent years.

"For a long time, even the notion that we could limit expansion was viewed as crazy and now... the idea of large-scale expansion now seems crazy," he said.

That reversal is not uniformly popular, as not everyone here sees the oil sands as a bad thing.

"The reality is that they shut off the oil sands tomorrow, my community would starve," says Ron Quintal, chief of the Fort McKay Metis, noting that nearly everyone around works in or for the industry.

For Quintal, "Indigenous communities have spent 30 to 40 years... trying to get their foot in the door" so it would be "very difficult for us to try to take our people backward".

He added matter-of-factly: "The development of the oil has empowered us to be able to do things that weren't possible before."

FTX working to secure assets after 'unauthorised' transactions

By - Nov 13,2022 - Last updated at Nov 13,2022

In this file photo taken on February 9, 2022, Samuel Bankman-Fried, founder and CEO of FTX, testifies during a Senate Committee (AFP photo)

NEW YORK — The new CEO of troubled cryptocurrency platform FTX said Saturday the company was making "every effort to secure all assets" following unauthorised transactions potentially worth hundreds of thousands of dollars.

"Unauthorized access to certain assets has occurred," CEO John Ray said in a statement posted to Twitter by FTX's general counsel, Ryne Miller.

FTX officials did not detail the quantity of unauthorised transactions made, but cryptocurrency analysis firm Elliptic said in a report published Saturday that "$477 million is suspected to have been stolen".

More than "$663 million in various tokens" had been drained from FTX's wallets only 24 hours after it filed for bankruptcy, Elliptic said, with the difference "believed to have been moved into secure storage by FTX themselves".

FTX US and FTX.com "continue to make every effort to secure all assets, wherever located", Ray, who specialises in corporate turnarounds, said in the statement.

The announcement comes a day after FTX filed for bankruptcy, part of a stunning collapse that has reverberated through the relatively young sector, sending other cryptocurrencies plummeting and drawing scrutiny from government regulators.

Additionally, the platform's chief executive, 30-year-old Sam Bankman-Fried, once considered a star in the freewheeling cryptocurrency world, resigned.

As recently as 10 days ago, FTX was considered the world's second-largest cryptocurrency platform, at one point valued at $32 billion.

But the company is now left trying to reassure a skeptical public.

 

Fall from grace 

 

"Among other things, we are in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian," Ray said in the statement.

"Cold storage" refers to moving cryptocurrency assets to a hardware "wallet" unconnected to the Internet — to assure its security. 

Ray added that "an active fact review and mitigation exercise was initiated immediately in response" to the unauthorised transactions.

Overnight, Miller had tweeted about an investigation into anomalies and other unclear movements, and by Saturday morning indicated that "unauthorised transactions" had occurred.

FTX's troubles first surfaced amid press reports that its Alameda Research trading house was involved in a risky financial arrangement with FTX.com that appeared to involve grave conflicts of interest. 

Financial media reported that FTX executives knew the platform was using billions in customer funds to prop up Alameda.

Adding to the drama, Binance, the world's largest crypto exchange, agreed to buy FTX.com on Tuesday — before scrapping the takeover just a day later. 

FTX is being investigated by both the US Securities and Exchange Commission and The New York state Justice Department, according to the New York Times, which cited sources close to those probes.

The fall from grace even stretched to the world of sports, where the Miami Heat announced its FTX Arena is set for a rename and the Mercedes Formula One team said it had suspended a sponsorship deal with FTX and removed the company's logos from its cars ahead of this weekend's Sao Paulo Grand Prix.

EU and development banks boost Ukraine grain export support

By - Nov 12,2022 - Last updated at Nov 12,2022

BRUSSELS — Brussels and its major development partners announced on Friday a billion-euro (billion-dollar) boost to efforts to export Ukraine's grain harvest, despite Russia's invasion and threat to block Black Sea ports.

The European Commission, European Investment Bank, European Bank for Reconstruction and Development and the World Bank will invest the funds to improve and expand so-called "Solidarity Lanes".

These are routes to bring Kyiv's huge agricultural harvest — and some other imports and exports — overland from the war-torn country and onto the world market via safer European Union ports.

"Where Russia sowed destruction, Europe restored hope," European Commission President Ursula von der Leyen said, announcing the additional funding on social media.

Russian forces launched a full-scale invasion of Ukraine in February and, despite a UN- and Turkish-brokered deal to allow grain shipments, the fighting has disrupted the harvest and exports.

Ukraine is one of the world's biggest food suppliers and Brussels was keen to head off the threat of famine in parts of Africa and the Middle East, while supporting Kyiv's agriculture sector.

Friday's announcement commits a major funding boost to the project, with cash to reduce waiting times for trucks and trains crossing to Poland and Romania from Moldova and Ukraine.

An urgent grant of 250 million euros in European Commission funds will provide mobile equipment to improve the flow of traffic at border crossings and access routes, the statement said.

Longer-term funding from the development banks brings the total announced on Friday to around 1 billion euros and will supports repairs and development to road and railway freight infrastructure in Ukraine.

Alibaba keeps Singles Day sales tally under wraps for first time

By - Nov 12,2022 - Last updated at Nov 12,2022

An employee sorts packages for delivery during the Singles Day shopping festival at a logistics centre in Lianyungang, in China's eastern Jiangsu province, on Friday (AFP photo)

BEIJING — Chinese e-commerce giant Alibaba has not released full sales figures for its annual Singles Day event for the first time ever, as a cooling economy dampened demand.

Launched in 2009, Singles Day is the world's largest shopping festival, dwarfing similar US events such as Black Friday and Cyber Monday in terms of sales. 

Alibaba's sales last year hit 540.3 billion yuan ($76.1 billion), and many were watching to see if the company and other retailers taking part could combine for a record one trillion yuan in sales.

In a statement Saturday, Alibaba said results for this year's event were "in line with last year's... despite macro challenges and COVID-related impact", without offering details.

Some 290,000 brands participated in 2022, it added, with merchants offering varying levels of discounts starting as early as late October.

Research firm Syntun a day earlier estimated that platforms including Alibaba and JD.com had reached a combined 262 billion yuan between 8:00pm Thursday and 2:00pm (0600 GMT) Friday.

Once a festival of frenzied consumption led by Alibaba's effervescent founder Jack Ma, Singles Day has been more muted in recent years amid a Beijing crackdown on online platforms and waning state media coverage.

In April, regulators fined Alibaba $2.8 billion for anti-competitive practices and Ma's public presence has been noticeably diminished over the past two years.

"In terms of communications from the platform companies around the festival, there's been a shift away from celebrating excessive consumption and emphasising gross merchandise value [GMV]," Jacob Cooke, CEO of e-commerce consultancy WPIC Marketing + Technologies said. 

"The shift has been going on for a few years now, and that's related to common prosperity, the anti-monopoly drive," he added, referring to President Xi Jinping's ongoing drive to curb the influence of big tech. 

Consumers are also tightening their belts as Beijing persists with a zero-COVID strategy that has led to widespread pay cuts and disrupted supply chains.

Conceived by Alibaba, the event's title riffs on a tongue-in-cheek celebration of singlehood inspired by the four ones — "11/11" — that denote its date of November 11.

Alibaba is scheduled to report its earnings to stakeholders next week.

Cryptocurrency platform FTX files for bankruptcy, boss resigns amid tumult

By - Nov 12,2022 - Last updated at Nov 12,2022

In this file photo illustration taken on February 9, 2022, shows a smart phone screen displaying the logo of FTX, the crypto exchange platform, with a screen showing the FTX website in Arlington, Virginia (AFP photo)

NEW YORK — Crisis-struck cryptocurrency platform FTX has gone bankrupt in the United States and its chief executive Sam Bankman Fried has resigned, it said on Friday, the latest blow in a saga that has reverberated across the digital currency landscape.

The filing comes after the world's biggest cryptocurrency platform Binance agreed to buy its rival earlier this week but backed out, leading market players to consider possible regulator responses.

FTX Group announced in a statement Friday that it filed for Chapter 11 bankruptcy proceedings, adding it has begun an "orderly process to review and monetise assets for the benefit of all global stakeholders".

Chapter 11 is a US mechanism allowing a company to restructure its debts under court supervision while continuing to operate.

This week's financial chaos at FTX has seen major crypto currencies, including bitcoin, plunge.

Bankman-Fried issued a "sincere" apology Thursday, adding FTX would do "everything we can to raise liquidity".

The cash-strapped company added in its statement that it has appointed John J. Ray as chief executive with immediate effect.

"The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation," said Ray in the statement.

"Stakeholders should understand that events have been fast-moving and the new team is engaged only recently".

"Many employees of the FTX Group in various countries are expected to continue with the FTX Group and assist Mr Ray and independent professionals in its operations during the Chapter 11 proceedings," the statement said.

Binance agreed to buy FTX.com on Tuesday — before scrapping the takeover just a day later.

Binance Chief Executive Changpeng Zhao defended himself against accusations of any purposeful plot after the deal fell apart.

"FTX going down is not good for anyone in the industry. Do not view it as a win for us. User confidence is severely shaken," he tweeted.

The platform's collapse came as a shock even for an already turbulent industry.

Bankman-Fried, who worked as a broker on Wall Street before moving to Hong Kong in 2017, had cultivated friends in Washington and basked in glowing tributes when he stepped in to rescue other ailing crypto companies earlier in the year.

The turmoil at FTX, at one point valued at $32 billion, is a spectacular reversal of fortune for the founder and one-time cryptocurrency wunderkind.

"This is another black eye for the industry," David Holt, a cryptocurrency industry expert at CFRA, said of FTX's troubles.

The fall from grace even stretched to the world of sports where the Miami Heat announced its FTX Arena is set for a rename and the Mercedes Formula One team said it had suspended a sponsorship deal with FTX and removed the company's logos from its cars ahead of this weekend's Sao Paulo Grand Prix.

The Heat tweeted Friday that it and Miami-Dade County were "immediately taking action to terminate our business relationships with FTX", including finding "a new naming rights partner for the arena".

 

Growing doubts 

 

Doubts had already been growing about the financial stability of FTX, despite Bankman-Fried's good standing in Washington as a public face of crypto investing.

Attention had focused on the relationship between FTX and Alameda Research, a trading house also owned by Bankman-Fried that was taken down from the internet on Wednesday, reports said.

Specialist media site CoinDesk reported that 40 per cent of Alameda's balance sheet comprised FTX's FTT tokens, raising concerns of a potential conflict of interest.

"We don't know exactly what happened, but from all the reporting it looks like there was a lot of misconduct," former US Securities and Exchange Commission (SEC) lawyer Howard Fischer said on the CNBC network Friday, predicting that some clients would sue in order to recover their investments.

The company is currently under investigation by the SEC, according to The New York Times, citing sources familiar with the matter.

The regulator, which does not usually comment on ongoing investigations, did not respond to AFP's request for comment Friday, nor did the Department of Justice. 

Media reports suggest FTX had needed to find about $8 billion to plug a massive hole in its finances and escape bankruptcy.

Binance meanwhile axed its FTX takeover deal late on Wednesday and cited recent press reports about mismanagement of client funds and potential investigations.

Bankman-Fried, the son of Stanford Law School professors and a graduate of the elite Massachusetts Institute of Technology, has long been a vocal advocate for smoother access to the crypto market for the general public, particularly in the United States.

Kevin O'Leary, president of a venture capital firm and television personality who had invested in FTX, on Friday called for urgent regulations to safeguard the industry. 

"I lost money in the account, but I'm still going to invest on crypto," he told CNBC.

Facebook owner Meta to lay off 11,000 staff

By - Nov 09,2022 - Last updated at Nov 09,2022

In this file photo taken on October 28, 2021, this illustration photo taken in Los Angeles shows a person using Facebook on a smartphone in front of a computer screen showing the META logo (AFP photo)

NEW YORK — Facebook owner Meta will lay off more than 11,000 of its staff in "the most difficult changes we've made in Meta's history", boss Mark Zuckerberg said on Wednesday.

He said the cuts represented 13 per cent of the social media titan's workforce and would affect its research lab focusing on the metaverse as well as its apps, which include Facebook, Instagram and WhatsApp.

The tech industry is in a serious slump and several major firms have announced mass lay-offs — Twitter's new owner Elon Musk fired half its staff last week.

"I want to take accountability for these decisions and for how we got here," Zuckerberg said in a note to staff.

"I know this is tough for everyone, and I'm especially sorry to those impacted."

Ad-supported platforms such as Facebook and Google are suffering with advertisers looking to cut costs as they struggle with inflation and rising interest rates.

Zuckerberg told 87,000-strong staff he had expected the boost in e-commerce and online activity during the COVID pandemic to continue, but added: "I got this wrong, and I take responsibility for that."

The downturn has affected companies across the sector, with Apple and Amazon also recently announcing results that disappointed investors.

But Meta also faces some unique problems of its own.

The California-based company is being squeezed by Zuckerberg's decision to devote billions of dollars to developing the metaverse, an immersive version of the web accessed via virtual reality headsets.

Zuckerberg renamed the company Meta a year ago to reflect the commitment to the project, but the division working on metaverse technology has since made losses of more than $3.5 billion.

Facebook is also struggling to fend off Chinese-owned TikTok, the now dominant social media for younger users to the detriment of Meta's Instagram.

 

'Last resort' 

 

Mike Proulx, a research director at Forrester, said "Meta is amidst an identity crises" and that severe cost-cutting was "inevitable".

"The company has one foot in a risky long-term metaverse bet and another foot failing to compete with TikTok," he added.

Zuckerman has hinted several times this year that belt-tightening measures were just around the corner and said in his letter on Wednesday that staff layoffs were a "last resort".

Meta would also keep a hiring freeze going into next year, he said, and other spending cuts were envisaged.

"Fundamentally, we're making all these changes for two reasons: our revenue outlook is lower than we expected at the beginning of this year, and we want to make sure we're operating efficiently," Zuckerman wrote.

The measures were also a message to Wall Street, where the company's poor performance has sent the Meta share price plummeting by 70 per cent since the start of the year.

Last month, Meta announced profits of $4.4 billion in the third quarter, a 52 per cent decrease year-on-year.

The slump in profits comes despite its platforms dominating the world in terms of users — Facebook alone claims to have around two billion people who log on daily. 

Renault to list electric car unit on stock market, partner with China's Geely

By - Nov 08,2022 - Last updated at Nov 08,2022

PARIS — French automaker Renault announced a major reorganisation on Tuesday, splitting its operations into a new electric vehicle unit and a separate internal combustion engine division with China's Geely.

The flagship division of its revamp, electric vehicle and software entity Ampere, was being prepared for an initial public offering on the Euronext Paris in the latter half of next year at the earliest, it said in a statement. 

The new entity will employ around 10,000 staff in France and produce the R5 and 4L electric vehicles in the north of the country, the car maker said as it outlined the revamp for investors.

The electric vehicle market is expected to grow rapidly in response to consumers' worries about climate change, putting pressure on manufacturers to develop less polluting products.

The European Union last month agreed to phase out new CO2 emitting vehicles by 2035, a move set to turbo-charge the production of electric prototypes on the continent.

Renault said it plans to invite investment in Ampere but would remain the majority shareholder with "the support of potential strategic cornerstone investors".

Renault also intends to combine its technological, manufacturing and research and development activities for its hybrid and internal-combustion vehicles with Chinese automaker Geely in a new entity, "Horse".

The groups will share the division to design, develop, produce and sell components and systems for hybrid and internal-combustion vehicles, employing 19,000 people across Europe, China and South America.

In 2020, Renault suffered a historic loss and its recovery was destabilised by its withdrawal from Russia following Moscow's invasion of Ukraine.

The value of traditional car manufacturers pales in comparison to new players on the market specialising in electric vehicles such as Elon Musk's Tesla or Chinese firm BYD.

Renault still needs large investment to accelerate its electric transformation according to plans it presented in 2020.

US giant Ford has taken similar steps, announcing the creation of the "Ford Model E" earlier this year.

The announcement comes as the sales of traditional internal-combustion vehicles fall. 

In the first nine months of 2022, hybrid and electric vehicles represented 38 per cent of the brand's registrations in Europe, a year-on-year increase of 12 per cent.

The separation of Renault's activities has concerned trade unions after several waves of job cuts.

Investors on Monday expressed their interest in Renault's transformation, with the group's stock value climbing 3.77 per cent on the Paris stock market.

UAE, Egypt ink major wind energy deal on COP27 sidelines

UAE, Egypt to develop one of world’s largest wind farms

By - Nov 08,2022 - Last updated at Nov 08,2022

This handout image provided by the UAE Ministry Of Presidential Affairs shows UAE President Sheikh Mohamed Bin Zayed Al Nahyan and Egypt's President Abdel Fattah Al Sisi shaking hands (AFP photo)

SHARM EL SHEIKH — The United Arab Emirates and Egypt agreed Tuesday to develop one of the world's largest wind farms in a deal struck on the sidelines of the UN's COP27 climate summit in Sharm El Sheikh. 

The 10 gigawatt (GW) onshore wind project in Egypt will produce 47,790GWh of clean energy annually once it is completed, the UAE's state news agency WAM said in a statement, without specifying an exact timeframe. 

It will offset 23.8 million tonnes of carbon dioxide emissions — equivalent to around nine per cent of Egypt's current CO2 output, according to WAM.

The wind farm will also save Egypt an estimated $5 billion in annual natural gas costs and help create as many as 100,000 jobs, it said. 

Emirati President Sheikh Mohamed bin Zayed Al Nahyan joined his Egyptian counterpart Abdel Fattah Al Sisi at the signing of the agreement between the UAE's Masdar renewable energy firm and Egypt's Infinity Power and Hassan Allam Utilities.

In a statement on Twitter, Sheikh Mohamed said the deal was "consistent with our commitment to advance renewable energy solutions that support sustainable development".

The UN's COP27 climate summit kicked off Sunday in Egypt with warnings against backsliding on efforts to cut emissions and calls for rich nations to compensate poor countries after a year of extreme weather disasters. 

"We will endeavour to take forward the gains made here at COP27, as the UAE prepares to host COP28 next year," WAM quoted Emirati industry minister Sultan Ahmed Al Jaber as saying. 

COP28 will be held in the UAE from November 6-17, 2023. 

Carrefour in discount, own brand push against inflation

‘We are speeding up our transformation to consolidate our model of sustainable growth’

By - Nov 08,2022 - Last updated at Nov 08,2022

French retail company Carrefour's CEO Alexandre Bompard speaks during the presentation of the company's strategic plan 'Carrefour 2026' at the Carrefour headquarters in Massy, south of Paris, on Tuesday (AFP photo)

PARIS — French supermarket giant Carrefour announced plans Tuesday to expand its discount operations and own brand products as it continues to cut costs amid spiralling inflation.

The move comes as part of plans to slash costs by 4 billion euros (dollars) through to 2026 under a strategy which also sees a still unknown number of job cuts.

"We are speeding up our transformation to consolidate our model of sustainable growth," said chairman Alexandre Bompard in a statement, as the group also looks to expand its presence in e-commerce.

As it bears down on costs amid a cost-of-living crisis, Carrefour aims to lift own brand foodstuff sales to 40 per cent of total sales from a current 33 per cent.

Bompard, at the helm since 2017, is also set to launch in France the group's Brazilian discount chain Atacadao from the third quarter of next year, as well as further develop another low-cost brand Supeco, notably lifting its presence from 120 stores in Spain to 200 by 2026.

Supeco began operations in Senegal in 2019 and has since spread its wings to Ivory Coast and Morocco while also launching operations in Spain, Italy, Poland and Romania as well as Brazil.

Carrefour says it is stepping up commitment to local partner producers from a current 39,000 to 50,000 over the coming three years.

It will further expand its Potager City brand, which distributes online subscription-based extra-fresh and seasonal fruit.

The group sees itself as at the forefront of increasing locally-produced food transition to within 50 kilometres of sale points.

Shares in Carrefour were down 1.8 per cent at 16.26 euros in mid-morning trading in Paris, compared with a year high reached in May of 21.03 euros.

The group employs some 320,000 people in around 30 countries.

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