Carrefour shares were trading higher Friday, as the French retailer announced it had signed an agreement with online fashion store, Showroomprive. Europe’s largest supermarket Carrefour, will purchase 17% of the fashion etailer.
By 1455 BST, Carrefour shares were 1.80% higher at €17.80. Carrefour shares have been slowly recovering from the September 2017 slump.
Carrefour deal details
The Carrefour deal will see the French retailer take a 17% share in Showroomprive from Conforama, a subsidiary of troubled Steinhoff, for €13.5 per share, or a total of €79 million.
Showroomprive’s founders will retain 27.17% of the capital and 40.42% of the voting rights. Carrefour will hold 16.86% of the capital and 13.67% of the voting rights.
"This partnership is a new step in the acceleration of our digital strategy, in an omni-channel approach,” said Carrefour’s CEO, Alexandre Bompard.
“It also allows Carrefour to enter the online private sales market and strengthen its offering. I am convinced of the quality of Showroomprivé's management and the strong potential resulting from the operational cooperation between our two groups,” Bompard said.
Showroomprive was equally positive.
"We are pleased with this partnership with Carrefour,” said Showroomprive co-founders, Thierry Petit and David Dayan.
“It allows us to enter a new stage after the agreement with Conforama, in partnership with one of the world's leading retailers. It allows us to continue building our omni-channel offering and opens up unprecedented opportunities,” they added.
Good news for Carrefour’s future
Investors and analysts were positive on the deal and likely hopeful the foray into online shopping, via a different avenue will help the group as it continues to struggle to regain market share lost to rival Leclerc.
Bompard is also under pressure from shareholders to successfully grow Carrefour’s online presence.
Earlier this week, however, some Carrefour price target news showed UBS analysts have a €16.00 price target for the European retailer. Deutsche Bank, meanwhile reiterated it €14.00 price target and sell rating on the Carrefour stock.