French retail giant Carrefour has seen its shares plunge by 13.8% following widespread unrest in France, adding to mounting pressure already faced by the company from pro-Palestinian boycott campaigns across Arab markets due to its commercial ties with Israel.
The retailer lowered its financial forecasts for 2026 after dozens of its stores were damaged during protests in France on 17 and 18 October, estimating that the French unrest could cost it between €80 million and €200 million in operating profits.
Carrefour's shares fell sharply during trading on the Paris stock exchange, as the company warned that disruption to its operations, rising security costs and weakening consumer spending would weigh on its performance for the remainder of the year.
The latest setback comes as Carrefour continues to face boycott campaigns linked to Israel's genocidal war on Gaza, with pro-Palestinian activists targeting the retailer over its partnerships with Israeli companies and allegations that its Israeli franchisees have supported Israeli soldiers.
Unrest hits French operations
Carrefour chief executive Alexandre Bompard told financial analysts on Tuesday that around 50 stores had been damaged on the first day of unrest, with several suffering extensive looting and destruction.
Other branches were closed as a precaution amid fears of further attacks, while employees and business partners faced what Bompard described as extremely difficult conditions.
Chief financial officer Matthieu Malige estimated direct losses at tens of millions of euros, including stolen or destroyed merchandise, damage to stores and equipment, and temporary closures.
The company has also been forced to increase spending on security, including hiring external guards, while restrictions on commercial activity remain in place.
Carrefour operates approximately 6,000 stores across France, with a significant presence in Paris, Lyon and Marseille.
Even stores that escaped physical damage have experienced falling customer numbers, reduced opening hours and other operational difficulties.
The disruption followed protests over the rising cost of living and conditions in the education sector, some of which descended into violence and looting. French authorities imposed partial and localised curfews in affected urban areas.
Following the unrest, Carrefour reduced its forecast for improvement in its operating margin to between zero and 0.15 percentage points, down from an earlier target of 0.25 percentage points.
It now expects adjusted earnings per share to remain broadly stable or increase only slightly compared with 2025, having previously forecast growth of between 7% and 9%.
The company also revised its free cash flow outlook from slight growth to a slight decline.
In a statement on Tuesday, Carrefour announced plans to reduce investment in France for the remainder of the year, cutting its annual capital expenditure target from €1.7 billion to €1.6 billion.
The company attributed the decision to weaker customer demand and rising security and logistics costs.
Financial research firm AlphaValue estimated that the unrest could wipe out between 20% and 55% of Carrefour's expected fourth-quarter operating profit in France.
The disruption comes at a particularly difficult time for retailers, with the Black Friday and Christmas shopping periods approaching.
Carrefour faces the prospect of accumulating unsold non-food products, potentially forcing it to introduce deeper discounts and placing additional pressure on cash flow.
Bompard described the situation facing the company in France as unprecedented, citing uncertainty over consumer spending and the ability of stores to remain open.
Further demonstrations are expected on Saturday and 5 November, raising concerns about additional disruption.
Gaza boycott campaigns add to pressure across Arab markets
Alongside its difficulties in France, Carrefour has faced sustained boycott campaigns in several Arab countries over its commercial relationships with Israeli businesses amid Israel's genocidal war on Gaza.
The Palestinian-led Boycott, Divestment and Sanctions (BDS) movement has targeted the French retailer over its partnership with Israeli electronics and retail company Electra Consumer Products and its subsidiary Yenot Bitan.
The Palestinian BDS National Committee launched a global boycott campaign against Carrefour in December 2022, before expanding it following the outbreak of the Gaza war in October 2023.
The committee has accused Carrefour's Israeli franchisees of supporting Israeli soldiers through the distribution of gifts and food packages and the organisation of fundraising initiatives.
The allegations have fuelled calls for consumers to avoid Carrefour stores and products, particularly across the Middle East and North Africa.
By October 2025, the Carrefour brand had disappeared from Jordan, Oman, Bahrain and Kuwait, where stores were replaced by the HyperMax brand.
The regional retail business operated by UAE-based Majid Al Futtaim, which runs Carrefour franchises across several Arab countries, reported an 11% decline in revenue to 11.6 billion dirhams ($3.16 billion) in the first half of 2024.
Its earnings before interest, taxes, depreciation and amortisation fell by 47% to 278 million dirhams ($75.7 million).
In its financial statement issued on 27 August 2024, the group attributed the decline to weaker sales and consumer confidence linked to the regional conflict.
In Morocco, Rachid Hadni, chairman of LabelVie, which operates Carrefour stores in the country, acknowledged that the brand had suffered in 2024 and that efforts were underway to regain customers, according to French newspaper Le Monde in April 2025.
LabelVie's revenue growth slowed from 13% in 2023 to 3.9% in 2024, despite opening 24 new Carrefour stores.
In Tunisia, pro-Palestinian demonstrations outside Carrefour outlets in April 2025 prompted several branches to close temporarily.
The boycott campaigns have become part of a broader movement targeting international companies maintaining commercial relationships that benefit Israel amid its genocide in Gaza.