Moody's Investors Service has said that the strong revenue growth rates posted by European food retailers in the third quarter of the year points to a stabilisation of the sector's credit quality.
In a report entitled Food Retail – Europe: Improving revenue generation in Q3 supports the credit quality of European food retailers, Moody's said that Europe's retailers are posting 'resilient' performances, despite domestic challenges.
It anticipates that Spain's Dia Group, which reported strong like-for-likes on 25 October, 'will keep posting positive revenue growth in Iberia, thanks to the successful remodeling of its store portfolio'.
Similarly, Carrefour, which also recently posted Q3 figures, 'should continue to post healthy revenue growth in 2017, benefitting from the recovery of the Brazilian market, as well as from the strengthening of Southern Europe'.
"European food retailers are showing resilient performances in challenging home markets while benefitting from the gradual recovery of Eastern Europe and Latin America," commented Vincent Gusdorf, vice president - senior analyst at Moody's.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
