Confirming media speculation, French supermarket chain Carrefour Group (0NPH.L, CRRFY.PK, CRERF.PK) on Monday said its Board of Directors unanimously selected Georges Plassat to succeed Lars Olofsson, who has informed the Board that he would not seek the renewal of his mandate as Chairman and Chief Executive Officer at the next shareholders' meeting to be held on June 18.
Georges Plassat is currently Chairman and CEO of privately-held French fashion retail group Vivarte group. Plassat earlier served as the managing director of Carrefour Spain from 1997 to 1999, and will now become its third CEO in the past four years.
Plassat will join Carrefour on April 2 as Chief Operating Officer for a short transition period before becoming CEO at the end of Carrefour's shareholders meeting.
Plassat's appointment to Carrefour's Board of Directors will initially be submitted to shareholder approval, after which he will be proposed as Chairman of Carrefour Group at the first Board meeting following the Assembly.
Plassat said he is well aware of the magnitude of the task ahead.
Carrefour is the world's second-largest retailer by sales after U.S.-based Wal-Mart Stores, Inc. (WMT) and has been going through a bad patch, issuing five profit warnings in the last 18 months. Olofsson has been under pressure for some time from Carrefour's shareholders, U.S.-based Colony Capital LLC and French private equity firm Groupe Arnault to restore margins and profitability.
Groupe Arnault belongs to LVMH SA's Chairman and CEO, Bernard Arnault. Both the shareholders together hold 16 percent of Carrefour, which they acquired through a joint investment made in 2007.
Olofsson, aged 60, was appointed CEO of the Carrefour Group on January 1, 2009. He joined the Board of Directors in April 2009 and was named Chairman in June 2011. He also serves as chairman of the Carrefour Foundation.
The stock closed on Paris on Friday higher by 0.60 percent at 18.26 euros on 5.39 million shares.
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