Carrefour profits 31% more in Latin America
Valor Econômico 03/12/2009
In the balance of Carrefour, released yesterday in Paris, the good performance in Latin America - particularly in Brazil - is different from the rest of the world. The sales of the French retailer in the region increased 27.9% amounting to 10.5 billion Euros in 2008. Even more representative was the increase of 31% in the operating profit of the businesses, to 395 million Euros. Such operations include the supermarkets in Brazil, Argentina and Colombia. In Europe, on the other hand, the numbers are discouraging. Forced to lower the prices in order to continue competitive, Carrefour suffered a fall in the operating profit of 3% in France and 5.1% in the rest of Europe in 2008. In Latin America, Atacadão stood out, according to news agencies. The largest Brazilian chain of the "wholesale-retail" hybrid model which only exists in Brazil, was purchased by Carrefour in 2007 and it provided new vigor to the businesses of the French multinational. Before the acquisition, the group had even put in doubt its operation in the country due to a series of problems faced throughout this decade. "Brazil remains as an investment priority for the international headquarter, at a world level, and because of that we will keep our expansion plan that foresees investments of nearly R$ 1 billion (US$ 434.8 million) for 2009 and another R$ 1 billion (US$ 434.8 million) for 2010", affirmed the managing director of Carrefour in Brazil, Jean-Marc Pueyo. This year, the company foresees inaugurating 70 stores, among all of its brands, and it must also increase the service chain, like gas stations and drugstores.