CARREFOUR, EUROPE’S biggest retailer, will unveil its last annual results under outgoing boss Lars Olofsson tomorrow, likely highlighting the magnitude of the task facing incoming chief executive Georges Plassat.

The French retailer, which under Olofsson has failed to reverse years of underperformance in its main European markets, is expected to slash its dividend and capital spending to preserve its cash and credit rating, following a slide in 2011 operating profit as cash-strapped shoppers cut back on spending.

With Mr Plassat joining the company in April, but only taking on the full role of chief executive in June, analysts are ruling out big strategic announcements apart from a probable halt to Planet – Carrefour’s costly European hypermarket revamp.

“We expect Carrefour to formally announce it will stop the roll-out of its new Carrefour Planet concept, given the debatable performances and returns on this new format as well as balance sheet constraints,” Nomura analysts said in a note.

Carrefour, the world’s second-biggest retailer behind US group Wal-Mart, has said it might scale down Planet to focus on a more immediate plan to lower prices to lure shoppers, who cut spending on discretionary non-food items in France, southern Europe and China in the fourth quarter.

Carrefour – which is heavily exposed to some of Europe’s weakest markets and makes the bulk of its sales in hypermarkets – also warned in January that the decline in 2011 operating profit would be at the worse end of a forecast range of 15 to 20 per cent.

Analysts polled by Reuters expect Carrefour to unveil a 19 per cent fall in full-year profit to €2.196 billion and a 33 per cent cut in the dividend to €0.72 per share.

Surprises could come in the form of more one-off charges due to the deteriorating economic climate in countries like Italy and if Carrefour opts for a large accounting clear-out to allow Mr Plassat to start with a clean sheet, some analysts said.

It was unclear whether Carrefour, which is still reeling from a string of profit warnings last year, would give specific guidance for 2012 as it awaits its new chief executive. – (Reuters)