France unrest impacts tourism, retail, and stock markets

Widespread civil unrest in France, driven by protests over living costs and public spending, is causing significant economic disruption across the tourism, retail, and financial sectors.

In the retail sector, Carrefour reported that its shares fell by 14 percent following a downward revision of its annual profit forecast, citing an ‘unprecedented situation’ in the country. The supermarket giant estimates damages exceeding 10 million euros, with 50 of its stores targeted and 19 looted. Other retailers, including Intermarché, Apple, Decathlon, and Fnac, have also reported damage. The luxury sector has faced significant hits, with stores for brands such as Burberry, Louis Vuitton, Christian Dior Parfums, Celine, and Lacoste being attacked or damaged, leading Sephora to close its entire French network.

The tourism industry is also expressing concern as violence in cities like Paris, Nice, and Lyon impacts hotel bookings. MKG Consulting noted a slowdown in Paris hotel reservations for the coming weeks, with some periods seeing a significant drop in booking rates compared to the previous year. Industry leaders warn that international travelers from the US, China, and Germany may be particularly sensitive to these security risks.