French retail giant Carrefour has trimmed its sales guidance for fiscal 2008, as aggressive pricing activity has failed to boost volumes significantly.
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Carrefour said sales at constant exchange rates would grow by around 6.5% in the full year, down from previous guidance of 7%.
As economic conditions have taken a turn for the worse, Carrefour has witnessed a drop in sales growth – which stood at 8% in the first half of the year.
Responding to the challenging trading environment, Carrefour launched a campaign to slash prices and drive volumes gains.
“Carrefour has observed deteriorating global consumption trends, particularly in Europe. In this context, Carrefour has chosen to continue its aggressive promotional policy to meet the needs of its customers,” the company said in a statement late yesterday (17 December).
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By GlobalData“This deliberate policy allowed the group to stabilise its market share in France in November and to improve its position in Spain. In this context, the group now expects activity contribution to grow slightly compared to 2007,” Carrefour continued.
Shares in Carrefour dropped in morning trade today, falling 8.13% to EUR26.94 at 11.38am (GMT).
