Retail giant Carrefour has posted a -1.1% decline in sales (at constant exchange rates) in its home market of France for the full year, according to the retailer’s results.
The group posted €35.88 billion in net sales in France for the year, down marginally from the €36.27 billion in recorded last year.
In Europe as a whole, sales were up 0.1% to €55.96 billion, while overall, Carrefour’s total sales were €79.64 billion, which is 2.7% higher than last year at constant exchange rates.
Good Performance
The year saw ‘good performance in food in all countries’ and ‘excellent sales growth in Brazil and continued positive momentum in Europe’, according to a Carrefour statement.
During the period, it opened 871 new stores, as well as developing its e-commerce proposition, deploying new websites and apps for non-food in all of its markets.
The group posted an EBITDA of €3.89 billion and recurring operating income of €2.35 billion, which it said was ‘in line with expectations’.
"Carrefour emerges from 2016 a stronger company,” said chief executive Georges Plassat.
“The increase in sales, for the fifth consecutive year, attests to the relevance of our multiformat and omnichannel model, which is now a reality in all our countries. In 2017, Carrefour will continue to expand in all its formats, stores and digital, to enhance its proximity to its clients.
“Carrefour is resolutely the reference in food retail, anticipating trends, thus opening new paths for development and growth. Innovation, the pursuit of operational excellence and strict financial discipline will support value creation.”
Omnichannel
In terms of omnichannel, Carrefour said that its gross merchandise volume in food and non-food stood at €1.2 billion last year, anticipating that this will grow to €4 billion by 2020.
‘Thanks to the complementarity between its multiformat physical network and its e-commerce format, which is gaining strength, Carrefour multiplies opportunities to develop contacts with customers and sales, as part of its resolutely omnichannel approach,’ it said.
‘For example, in France, clients who use several Carrefour formats already account for half of the total number of clients and two thirds of sales.’
Commenting on its performance, Barclays European Food Retail Equity Research said, ‘Today’s set of numbers and announcements are unlikely to create excitement despite the attractive valuation’.
© 2017 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.
