Despite the owners' solid capital and influence, Far Eastern Geant has been working to break even since the 50-50 venture was formed in 2000.
Acknowledging that his priority here is to make a diagnosis of problems with the company's performance, Billaud has decided to adopt a conservative expansion policy while making affordable investments to fight cut-throat pricing.
He said Far Eastern Geant will only open one new store this year, in Taipei's Dazhi, as well as another one next year. Any other forecasts cannot be provided because, "I have to respect the shareholders [both of which are listed companies] and I don't want to lie to you," he added.
Although the goal to break even can't be met this year, the hypermarket player has sacrificed NT$60 million (nearly US$2 million) in profits since last month to offer lower prices to consumers.
In light of a similar plan by Carrefour to take a NT$1 billion cut in profits this year to slash retail prices and RT-Mart's decision to sacrifice 2 percent of gross margin to do the same, Far Eastern Geant is facing a tough war.
"Taiwanese consumers are very demanding and critical. [If] they like, they come. If they don't like, they don't come. But the future belongs to innovative groups," Billaud said.
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