French retailer Guyenne et Gascogne has announced a fall in net income for the first half of 2005 following price cuts.

Sales for the period were €208m (US$254m), compared with €206m in the same period last year. Net income was €9.96m, compared with €13.96m last year.

“In France, investments on prices have made it possible to improve footfall in stores, although this voluntary reduction of margins has had a particularly marked impact on earnings for the first six months of the year,” the company said. “In Spain, the situation has remained favourable for hypermarkets and the outlook for expansions is going to further strengthen the performance of Centros Comerciales Carrefour.”

“For the full year, the downturn in consolidated income is expected to be much less marked than at June 30th, 2005,” it said.