Sales in its first half to June rose 4.8 per cent in France, led by the group’s discount and convenience formats. Its Franprix and Leader Price chains were up 8.7 per cent and expansion of these discount fascias will accelerate in the second half. Convenience format sales were up 5.7 per cent.
Naouri said that, while the group will focus on strengthening its discount and convenience formats, it has no intention of selling its hypermarket business, Géant Casino, which reported “satisfactory results” for the period.
Bernstein senior analyst Christopher Hogbin said Casino is strategically well-positioned in France. “Its format mix – skewed towards smaller c-store formats – leaves it well-protected from the current challenging price environment in France and, longer term, exposes it to faster growth given demographic shifts,” he said.
Carrefour reported operating profit up 5.4 per cent to 1.4 billion (£1.1 billion) for its first half to June, which Hogbin said should reassure some investors who are concerned that the grocer may warn on profits again.
Meanwhile, Dutch grocer Ahold reported operating income down 39 million (£31.6 million) to 235 million (£190.7 million) for its second quarter to July 13.
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