Carrefour Results Boosted by Italy Sales Growth

17 Jul 2014 --- Carrefour, France’s largest retailer, has reported a rise in sales growth for its second quarter, driven by improved conditions in Southern Europe, particularly Italy. Sales in France, Spain and Brazil (the company’s largest market after France) continued to increase but trading remained poor in China.

On a conference call, chief financial officer Pierre-Jean Sivignon, said the end of year forecast of E2.28bn, a 6.3% rise on the previous year, was ‘reasonable’.

Italy was the surprise growth market for Carrefour in the second quarter and its 4.9% organic sales growth was the best in at least five years, according to Sivignon. However, he also stated that: “The retail environment in Italy remains difficult”.

For its French stores, the group said food sales continued to grow while non-food sales remained flat. All store formats in France recorded 0.4% growth following a 0.7% increase in the first quarter.

The company has responded to consumers’ lack of disposable income by cutting costs and revamping stores, as well as simplifying product offerings. The moves were also made in response to changes in consumer habits, with less people opting to shop at the company’s traditional hypermarket format – in favour of online of local shops.

Carrefour is the world’s largest food retailer after Wallmart.