Carrefour Sees Slowdown In Like-For-Like Sales Growth In FY 2017
Retail giant Carrefour has posted a 1.6% increase in like-for-like sales in full year 2017 (+2.7% at constant exchange rates), down from the 3.0% increase it posted a year ago.
The group posted total sales of €88.2 billion for the year, of which €40.1 billion was generated in France, a business that saw a 0.8% increase in like-for-likes (-0.1% at constant exchange rates).
Its international operations posted sales of €48.1 billion, which was 2.2% higher on a like-for-like basis (+5.6% at constant exchange rates). Latin America was up 6.1%, while Asia was down 3.7%.
Slowdown In Food Sales
Commenting on its full-year performance, Carrefour said that the lower growth in sales reflects a ‘slowdown in food sales growth that was particularly marked in the second half. Food sales in Brazil grew at a far slower pace in 2017, impacted by food deflation since the month of June while food inflation had been high in 2016, in particular in the second half.
‘Food sales in France and in Europe in 2017 showed broadly similar trends to 2016’.
It noted that like-for-like growth across its total European operations stood at 1.3%, despite a ‘toughening competitive environment’ and reflecting ‘improved trends’ in Northern Europe.
Commenting on its fourth quarter performance, meanwhile, Carrefour posted sales of €23,328 million, up +1.9% on a like-for-like basis, which marked an improvement over the previous quarter (+0.5%).
It said that this was principally linked to activity in France, where like-for-like growth was up 1.5% in the quarter, compared to a 0.9% decline in the third quarter.
Other European markets had a mixed quarter - Spain saw LFL sales down 0.6%, while Italy was down 1.1%. Belgium, meanwhile, posted a 0.8% rise, and Poland (+1.9%) and Romania (+7.8%) also saw gains.
The group plans to launch a 'transformation plan' on 23 January next.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.