French retailer Carrefour saw its turnover drop 1.3 % in the third quarter, due to lower gas prices and exchange rates in Latin America. In France however, the recovery continues with great strides in every format it owns, including hypermarkets.
21.11 billion euro turnover
Carrefour has announced a group turnover of 21.11 billion euro in the third trimester, 6.67 % lower than in the same trimester last year - partly due to the group's exit from Greece, Columbia, Malaysia, Singapore and Turkey. Eliminating the turnover those countries had, meant that its drop was limited to 1.3 %.
Removing gas sales and the calendar effect resulted in a like-for-like turnover growth of 3.5 %. France, still Carrefour’s most important market, helped quite a bit: turnover grew 1.4 % to 10.15 billion euro. The like-for-like sales increased in all of the group’s formats, especially in convenience stores (+5.9 %) and in hypermarkets (+2 to 3 %)
"Our action plans are starting to work, especially in France, where our price image has improved a lot”, said CEO Pierre-Jean Sivignon during a conference call. “In our hypermarkets, food sales have been on the rise for the fourth quarter running.”
International growth, also in Belgium
Carrefour saw its like-for-like turnover increase 3.6 % outside of France, but the exchange rates ruined that piece of good news. Turnover eventually dropped 3.8 % lower, at 10.96 billion euro. The biggest organic growth can be found in Latin America (Brazil rose 8.8 % and Argentina even soared 22.3 %) and somewhat to a lesser extent in Asia. China managed to grew for the second quarter running, this time adding 4.7 %.
European sales outside of France dropped 2.7 %, but Carrefour sees a few positives: Spain is showing signs of stabilizing, dropping 1.8 % (on a like-for-like basis), while Italy has managed to slow down the drop (- 3.9 %). Belgium had a like-for-like growth of 1.6 %.