Quarterly sales at two of Europe’s biggest retailers, Carrefour and Metro, showed turnaround efforts in their home markets starting to bear fruit and signs the region’s long-suffering economy is at last on the mend.
European store groups have had a torrid few years, hit by a squeeze on disposable incomes from a prolonged economic downturn and cut-throat competition from the rise of online shopping.
Carrefour, which has particularly suffered from its focus on out-of-town megastores, said on Thursday hypermarkets in its main French market had returned to underlying sales growth for the first time in five-and-a-half-years, helped by its drive to cut costs, improve price competitiveness and revamp stores.
Germany’s Metro, which has also been restructuring, said it was growing again in its home market of Germany and was upbeat for the key Christmas period despite a blow to third-quarter sales from volatile foreign exchange rates.
As well as reflecting self-help measures, the results add to signs the eurozone economy is returning to life after years in the doldrums.
Retail sales in the 17-country EMU bloc rose more than expected in August.
But the stronger performances at Carrefour and Metro contrast with results this month from Britain’s Tesco, where plunging profits in Central and Eastern Europe blew a hole in its recovery plan.
Carrefour, the world’s second-largest retailer by sales behind US group Walmart, said it made third-quarter sales of €21.11bn ($28.48bn), representing like-for-like growth of 3.1%, excluding fuel.
Read more: Retail revivals show that Europe is on mend | Europe | BDlive
European store groups have had a torrid few years, hit by a squeeze on disposable incomes from a prolonged economic downturn and cut-throat competition from the rise of online shopping.
Carrefour, which has particularly suffered from its focus on out-of-town megastores, said on Thursday hypermarkets in its main French market had returned to underlying sales growth for the first time in five-and-a-half-years, helped by its drive to cut costs, improve price competitiveness and revamp stores.
Germany’s Metro, which has also been restructuring, said it was growing again in its home market of Germany and was upbeat for the key Christmas period despite a blow to third-quarter sales from volatile foreign exchange rates.
As well as reflecting self-help measures, the results add to signs the eurozone economy is returning to life after years in the doldrums.
Retail sales in the 17-country EMU bloc rose more than expected in August.
But the stronger performances at Carrefour and Metro contrast with results this month from Britain’s Tesco, where plunging profits in Central and Eastern Europe blew a hole in its recovery plan.
Carrefour, the world’s second-largest retailer by sales behind US group Walmart, said it made third-quarter sales of €21.11bn ($28.48bn), representing like-for-like growth of 3.1%, excluding fuel.
Read more: Retail revivals show that Europe is on mend | Europe | BDlive
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