Carrefour weathers difficult fourth quarter

In France sales rose by 4.4 per cent and the supermarket increased its share of the food market by 0.5 per cent during the full year. Poor performance during the final quarter was offset by stronger results in the earlier part of the trading year as like for like sales increased by 1.6 per cent and 2.9 per cent in hypermarkets and supermarkets respectively.

"October was characterized by a marked slowdown in French consumption. As a result, hypermarkets and supermarkets like-for-like sales, petrol included, fell by more than four per cent, of which six per cent non food,"​ Carrefour said in its company statement.

The French food retailer also blamed faltering sales in the latter half of the trading year on strengthened competition within the French market and has reacted by strengthening its pricing policy. Despite difficulties at home the business grew internationally driving sales up by 8.1 per cent.

European sales grew by 4.3 per cent during the trading year, and difficulties in Italy were offset against positive results from Spain, Greece and Poland.

Carrefour enjoyed sales growth of 13.3 per cent in Latin America, and recovered from a decline of 0.7 per cent in Brazil in the first nine months with like for like growth of 7.7 per cent.

The Asian market provided mixed results for the French food retailer. Growth in China and Indonesia was contrasted by poor results in Taiwan.

Carrefour is continuing its global expansion having opened 968 new stores during the trading year accounting for 1.4 million msq of new trading space.