Store closures in Belgium and weak sales in its Brazilian hypermarkets meant that Carrefour fell short of many analysts' estimates in H1, however the retailer still managed to post a net profit of €82 million, compared to a loss of €58 million a year earlier. CEO Lars Olofsson noted the retailer has "taken radical operating decisions".
Carrefour is confident it can achieve its 2010 objectives, which includes the rollout of its new hypermarket format, Carrefour Planet, the first two stores of which opened last week. It expects to expand in countries such as China and Brazil, markets in which it can develop a leadership position. It also expects to considerably expand its private label range.
First half-earnings in its core French market rose 16 per cent, to €513 million. One-off costs included the closure of 16 Belgium stores and other write-offs in Brazil.
According to retail analyst Justin Scarborough at Royal Bank of Scotland, "in our view Carrefour remains a Hold at best, with better value elsewhere in the sector, particularly looking at Tesco, Morrison and Ahold." (31 Aug) © 2010 - ESM: European Supermarket Magazine
