French supermarket chain Carrefour has managed to achieve an excellent result for its current fiscal year's first quarter, mainly in Brazil and France.
Latin American growth, Chinese drop
Over the first three months of the year, Carrefour managed a 21 billion euro turnover, which is a 6.2 % increase compared to the same period last year. French like-for-like sales grew 2.5 %, but Carrefour's Latin American sales were the real eye-catcher: like-for-like sales grew 12.5 % over there. Belgium managed a 2.1 like-for-like turnover increase, which helped European sales (excluding its home territory France) grow 0.9 % in total.
Its Asian performance was in stark contrast with the positive performances elsewhere: like-for-like sales dropped 11.3 % in the region, with China experiencing the biggest drop (- 14 %). That was even worse than what analysts had expected, at - 10 %.
Carrefour had already confirmed it would invest 2.6 billion euro into store updates and the addition of French pick-up points, but it remains to be seen whether the group will also devise a new Chinese strategy.