Strong sales increase for Carrefour, courtesy of Latin America

Carrefour posted solid performance in the first quarter of 2024. The slight sales decline in Belgium is mainly due to the exceptional sales increase in March last year, a consequence of social unrest at competitor Delhaize.

Private brands and e-commerce grow

At group level, the French retailer’s sales rose 13.5% to a good 22 billion euros. That growth was due to strong momentum in Latin America, where sales rose by as much as 48%. In Europe, on the other hand, the retailer saw sales decline slightly, due to lower food inflation, price investments and weak volume growth. In its French home market, hypermarkets had to give up some ground.

In its press release, the retailer refers to progress on key strategic initiatives. For example, the share of private brand sales rose from 35% to 37%. The ambition is to reach 40% by 2026. In the field of e-commerce, the group recorded a sales growth of 33%. The net promoter score (NPS) that measures customer satisfaction rose by 6 points. And Eureca, Carrefour’s European procurement hub, now has 20 partner suppliers.

No surprise

Carrefour Belgium’s comparable sales in the first quarter saw a slight decline of 0.2% versus 2023, but are 9.7% higher than in 2022. Increased volumes in January and February confirmed excellent commercial momentum, with comparable sales up 4.3%, the retailer reported.

The 7.6% sales decline in March is no surprise given the exceptional growth last year, when sales rose 16.8% as strikes broke out at Delhaize, following the announcement of the Future Plan. Carrefour opened four new stores in the first quarter and saw double-digit growth in online sales.