The French supermarket chain, Carrefour, has announced plans to invest $3.4bn into online shopping over the next five years.
The company has said that as part of the change of strategy, it will be cutting 2,400 jobs from its French headquarters in the Parisian suburb of Boulogne-Billancourt. It will also sell 273 of its discount stores, Dia, and reduce its market share in French hypermarkets.
“We are currently grappling with a profound global movement,” Carrefour said in a statement. “Our ways of consuming are changing: Quality, safety and where food comes from have become key concerns for our customers.”
The company will be looking to make target cost savings of $2bn on a cumulative basis by 2020 and to get one-third of sales from its range of own-brand products. It also hopes to treble its organic food revenue to €5bn by 2020.
In Paris, shares in Carrefour rose by as much as 6.6%.
This is part of an effort for Carrefour CEO, Alexandre Bompard to fend off competition from online shopping giant, Amazon. The company’s profits have eroded by two-thirds since 2007 because of the rise of online shopping and specialist stores.
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