Leading French food retailer Carrefour has reported an excellent start to 2003 with first quarter sales up 6 per cent on a constant basis to €18.3 billion. But the impact of exchange rates once again took its toll on reported figures, with turnover down 0.4 per cent.
The first quarter results were boosted by the opening of 159 new stores under a variety of Carrefour group fascias (three hypermarkets, 25 supermarkets, 83 hard discount stores, 47 convenience stores and one cash and carry), which contributed 3.5 per cent to the increase in sales. But there was also strong organic growth, with comparable stores sales accounting for 2.5 per cent of the increase.
In the group's five biggest European countries - France, Spain, Italy, Belgium and Greece - sales increased by 4.2 per cent and represented 82 per cent of the first quarter total.
The good performance was all the more welcome because it came in a first quarter which this year did not contain the Easter period, as it had done in 2002; the Easter period falls in April in 2003, which means that second quarter sales should be boosted as a result.
Food sales in French stores at reached €6.5 billion (78 per cent of sales excluding petrol), up 1.3 per cent. Carrefour said that the good performance vindicated its multi-format approach to retailing, with the sales growth driven mainly by the Champion supermarkets and the development of the hard discount and convenience store businesses. Some 38 new hard discount stores opened in the first quarter alone.
In the rest of Europe, sales increased by 7.5 per cent at constant exchange rates and by 3.1 per cent on a like-for-like basis. The good performance here was driven by the hypermarket outlets in particular in southern European countries such as Spain and Italy. There was, however, a negative currency impact of 2.8 per cent, mainly from Poland and Turkey.
In Latin America, where currency impacts took their toll on full-year results, there was a good performance in like-for-like sales in Brazil, where hypermarket turnover showed double digit growth and supermarkets sales increased 22.4 per cent. However, currencies continued to have a significant impact on sales in euros, with total turnover down 34.5 per cent to €1.2 billion.
There was a similar pattern in Asia, with good gains in like-for-like sales, particularly in China, offset by a slowdown in Taiwan and the impact of the consumption loan restrictions in Korea. Carrefour said it continued to expand its operations in Asia (and has been linked to the Asian business of troubled Dutch rival Ahold) but that currencies continued to take their toll.
Total sales for the Asian region reached €1.3 billion, up 11.4 per cent on a like-for-like basis but down 5.3 per cent overall.