Carrefour compensates European crisis with emerging markets

Carrefour compensates European crisis with emerging markets

French hypermarket chain Carrefour has had an almost steady turnover last quarter, in which it compensated decreasing sales figures in Europe – especially in Southern Europe and the French home market – with a steady growth in Latin America and Asia. All in all, the second biggest supermarket group of the world lived up to analysts' expectations.

Europe is pulling Carrefour down

Where analysts had counted on a total turnover of 21.65 billion euro, Carrefour realized a 21.72 billion euro turnover from April till June, a decrease of 0.3% compared to the same period last year. Shops that have been open for over a year experienced a decrease in sales of 1.3%.

 

Both analysts and Carrefour itself had feared the European crisis would have an even worse effect on the distribution giant, even after its recent exit from Greece. Still, Carrefour has seen its comparable turnover decrease by 4.3% in Italy and 7.3% in Spain, far worse than last quarter. Even in its French home based market, Carrefour keeps struggling - hence its like-for-like decrease by 3.3% (and even 5.77% in the hypermarkets).

 

Emerging markets and Belgium save the day

Contrary to the rest of Europe, Belgium is the silver lining for Carrefour: the distributor succeeded in achieving a like-for-like turnover growth of 0.8% after a few very bad years and a severe reorganisation.

 

Emerging markets also saved the day for the retail chain, especially in Latin America (+2,7%) and Asia (+14%). China is the main exception in the positive Asian picture: the Asian like-or-like turnover decreased by 2.3% because of problems in the country.

 

The success in Latin America means that Brazil is now Carrefour's second biggest market, only behind France. CEO Georges Plassat remains silent about his visions for the the future: probably only at the presentation of the semester results mid-August, will the new CEO – in all probability – finally reveal his plans for the distribution group.

 

 

Translated by Sanne Raspoet

Questions or comments? Please feel free to contact the editors


Lubach: “Fair clothing is a matter of priorities”

15/11/2017

Ever since the Rana Plaza disaster, the clothing industry has clamoured for transparency in the clothing manufacturing branch, but Zondag met Lubach’s Arjen Lubach proved on Sunday that there is no actual transparency yet.

Fashion chain Canada Goose opens first European store

14/11/2017

Canadian fashion chain Canada Goose opened its first European store in London. The brand’s clothing has been in Europe for quite some time, but only at multi-brand stores up until now.

Desigual suffers turnover blow in first three quarters

14/11/2017

Spanish fashion chain Desigual suffered a blow in the first three quarters of 2017, with turnover  down more than 10 %. It mainly struggled in Europe, a region where it generates almost all of its turnover.

Two or three stripes on clothing are Adidas' property

13/11/2017

Swedish store chain H&M can no longer use parallel stripes on its (sports) clothing, because they resemble Adidas’ three stripes too much, according to a The Hague court.

Strong third quarter for Adidas

10/11/2017

Sports clothing manufacturer Adidas experienced a strong third quarter. Its growth was slower than in the previous quarter, but its operational profit exceeded analysts’ expectations.

Yoox Net-a-Porter grows but still failed to live up to expectations

09/11/2017

Online retailer Yoox Net-a-Porter’s third quarter like-for-like turnover grew 17.7 % to 481.8 million euro, which is not entirely what analysts had expected. Its growth slowed down in the United States and China in particular.

Back to top