France-based Carrefour has said ‘better momentum in France’ and accelerating growth in Brazil’ had underpinned an acceleration in sales growth during the third quarter. Carrefour said total sales rose 2.7% at constant exchange rates, to €21.09bn, with like-for-like sales rising 2.1%.
Roll out of 2022 Transformation Plan aiding results
The retailer pointed to the roll out of its 2022 Transformation Plan as supporting its better performance in Q3 and the improvements made as 2018 has progressed. The acceleration of sales in Q3, versus H1, was most notable in the key markets of France and Brazil, where the retailer has placed a lot of strategic and commercial focus.
Carrefour growing presence for omnichannel offer
A key element of the 2022 Transformation Plan is focused on building out its omnichannel presence and enabling shoppers to move more easily between its stores. In its results it highlighted the opening of new Drives and pedestrian Drives in France, expansion of its home delivery service and the revamping of its websites to make it easier for shoppers to buy from a range of categories, including food and non-food.
Investment in its stores continued. In France this has seen it reduce the selling area of hypermarkets, with about 10,000 sq. m already reallocated and 40,000 sq. m more being investigated. It has also seen Darty shop-in-shop areas trialled in a store, with two likely to be in operation by the end of the year.
In Brazil this saw it add new stores to enable it to enter new areas and provide shoppers with greater choice. Carrefour said it had opened more than 300 convenience stores and 14 Atacadão in the country over the last nine months.
By geography, Carrefour reported that:
- France: Carrefour enjoyed an improvement in like-for-like sales in Q3 across all formats. It said food remained the main driver of its performance, with non-food markets remaining difficult. By format it said:
- Hypermarkets: total sales: +0.3%; like-for-like sales +0.0%;
- Supermarkets: total sales: +3.2%; like-for-like sales +2.6%;
- Other formats: total sales: +6.1%; like-for-like sales +4.7%;
- Other European markets: The retailer said it had seen a stable like-for-like trend across the countries versus the first half. By country it said:
- Spain: total sales: -1.7%; like-for-like sales -2.7%;
- Italy: total sales: -5.7%; like-for-like sales -4.4%;
- Belgium: total sales: -1.3; like-for-like sales +0.5%;
- Poland: total sales: +3.2%; like-for-like sales +2.7%;
- Romania: total sales: +7.6%; like-for-like sales +4.0%;
- Latin America: Carrefour said it had enjoyed ‘continuing strong sales momentum in the region aided by an end of food inflation in Brazil and market share growth in Argentina. By country – at constant exchange rates – it said:
- Brazil: total sales: +8.1%; like-for-like sales +5.1%. By format it said:
- Carrefour Retail: total sales: +2.2%; like-for-like sales +2.5%;
- Atacadão: total sales: +11.2%; like-for-like sales +6.2%;
- Argentina: total sales: +26.8%; like-for-like sales +28.6%;
- Asia: It noted that it had seen ‘improving trends mainly driven by an improvement in China, where ecommerce had gained. By country – at constant exchange rates – it said:
- China: total sales: -6.6%; like-for-like sales -4.8%;
- Taiwan: total sales: +6.0%; like-for-like sales +1.4%;