Carrefour to cut prices amid tough climate

Carrefour, Europe's biggest retailer, said it would focus on cutting prices to lure back consumers as it braced for another tough year as cash-strapped shoppers reduced spending.

Photo: Mychèle Daniau/AFP

The French group, posting a 0.1 percent drop in underlying first-quarter sales, said it was hit by continued weakness in its core Fench hypermarkets and in austerity-hit Southern Europe, where shopers cut back on purchases of discretionary non-food items.

In emerging markets, China continued to struggle while Brazil put in a robust performance.

The world's largest retailer behind U.S. group Wal-Mart said first-quarter sales reached 22.490 billion euros ($29.51 billion), a year-on-year rise of 1.5 percent which reflected aditional store opening days and higher fuel prices.

Stripping out fuel, currency and calendar effects, sales fell 0.1 percent, with revenue at its core French hypermarkets down 3.1 percent.

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