Carrefour is expected to focus on a radical overhaul of the branding of stores and its own-label food business in France to deliver a “breakthrough year”.

However, industry experts still believe that the French grocery giant’s international division will deliver the bulk of its growth in the long term and that Russia and Bulgaria could be its next new markets.

Last week, Carrefour chief executive José Luis Duran said: “This is a breakthrough year for Carrefour. The idea is to make the brand work harder, regardless of format. I want more customers in our stores, whether that is a hypermarket, supermarket, hard discounter, convenience store or over the internet.”

His clarion call came as Carrefour reported total sales up 10 per cent to 25.57 billion (£18.99 billion) in the three months to December 31. Like-for-like sales rose 4 per cent.

To whip its French operation into shape, Carrefour has appointed Gilles Petit, former country manager of Spain, to the new position of head of its French business.

Carrefour said a rebranding of its multi-format French grocery chains will help it hit its target of between 6 and 8 per cent sales growth across the group, excluding acquisitions.

As part of the strategy, the grocer has started adding the Carrefour name to its Champion stores in France, which could lead to the Champion fascia disappearing within three years.

Planet Retail global research director Bryan Roberts said the grocer has a big opportunity with own-label. “It used to have a fairly fragmented private-label strategy, but it is focusing more on the Carrefour brand,” he said. “They will focus on a three-tier [good, better, best] strategy.”

Despite the gradual turnaround of its French business over the past three years, Roberts said Carrefour will find it easier to deliver strong growth overseas, given the encroachment of discounters in France and the “cut-throat” competition between grocers and suppliers in the country.

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