Carrefour pushes ahead despite tough markets
Global supermarket giant growing sales
January 10 2004
Carrefour has reported full year group sales up 6 per cent to €79bn at contant exchange rates.
The global supermarket giant said that the rise, which falls to just 2.9 per cent when the impact of currency fluctuations is taken into account was achieved despite a tough economy in its French home territory and delays in China, where the central authorities are now keeping a closer eye on foreign retail development.
Across the fourth quarter, Carrefour’s French discount stores grew sales by 12.2 per cent, with like-for-likes up 6 per cent. Supermarkets sales increased by 3.9 per cent, with like-for-likes flat including petrol sales, and up 1 per cent excluding petrol.
Its French hypermarket like-for-like fell 1.8 per cent, mainly due to a tough market for non-food sales.
Elsewhere in Europe, like for like sales grew 3.7 per cent and total sales by 4 8.1 per cent. Spanish hypermarkets continued to perform strongly, showing a like-for-like increase of 6.4 per cent, while in Belgium like for like sales increased by 7 per cent. with hypermarkets growing like for likes 2.6 per cent.
In Latin America, Carrefour said it is seeing benefits of a cluster strategy which focuses on developing regional formats adapted to the purchasing patterns of the stores’ catchment area.
In Argentina, like-for-likes grew by 8.3 per cent across the quarter, with hypermarkets showing a like-for-like increase of 18.5 per cent. In Brazil hypermarket like-for-like sales grew by 3 per cent despite a tough economy, contributing to a 1.4 per cent like-for-like increase overall.
In Asia, eight hypermarkets in China scheduled to open at the end of the quarter, will now open in the first quarter of 2004. Like-for-likes sales in China were up 5.2 per cent.
Both Thailand and Indonesia both grew like-for-likes in double digits, while in Korea and Taiwan like-for-likes declined. However, Carrefour said both countries showed an improving trend.
Globally, organic expansion is on track, and with 920 outlets opened during 2003, at the end of the year Carrefour operated 10,385 stores.
