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European retailers with robust Christmas sales

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By Natali Schwab
DOW JONES NEWSWIRES 


FRANKFURT (Dow Jones) – The business of the European Retailer has in the fourth quarter of 2009 despite the difficult economic conditions proved to be relatively stable. Companies such as Carrefour SA and Tesco plc achieved gains. On the other hand had to German Metro AG suffered losses. With their Christmas sales were the three largest retail groups in Europe thereby satisfied.

A crumbling demand in connection with the Economic crisis and a high price competition, especially in Food industry to make the business of the company is currently difficult. To To stop migration to the discounters and regain customers, are Carrefour, Metro and Tesco in its focus Home markets, restructuring programs launched.

A strong business reported as the UK’s Tesco. In the six weeks to 9 January, the group increased sales by 6.9%. Robust developed especially the home market, the Lion’s share of revenues contributed. Here, Tesco achieved his own statements According to the "best Christmas trading for three years." The gain was 8.3%, exceeding the industry growth. After adjusting for gasoline sales and the VAT still remained even an increase of 4.9%.

Tesco goes for a long time a so-called "Trading up" strategy – a move towards higher value products. The Group has also his own brand product range and significantly expanded by the Premium expanded. With its own loyalty card, the retail group wants to also enhance customer loyalty – with success: According to Tesco contributed The redeemed coupons from 0.7% to the UK Revenue growth. Even in the online business in both the food and in Non-food sector, Tesco has invested a growth of 20% in the period under review was the result.

Even Metro, Carrefour, the second-largest after Retailers in Europe, has with "Shape 2012" in the past year Restructuring program launched, which will provide greater yields. It aims mainly on the ailing merchant business cash & Carry in Germany as well as the hypermarket division Real. The Dusseldorf are increasingly turning to private labels in all price ranges, with cash Metro & Carry to the range more on the professional customers . Align

Metro makes the lion’s share of their revenues abroad. A high growth, particularly in emerging markets like Eastern Europe previously resembled a weaker development in the home market out. This is after the collapse of the economy in Eastern Europe and the decay the local currencies over.

Thus, negative currency effects ensured in the fourth quarter for had a sales decrease of 3.4% at constant currency, It was only minus 0.1%. In all distribution lines with the exception electronics markets media reported Markt / Saturn, the Business losses. Nevertheless, with the Metro was Development of the Month December satisfied.

Carrefour also showed, however, thanks to a good business in Latin America in the final quarter of a moderate growth of 1% of. In its Home market, France, which remains the principal market for Carrefour is, paid to the modernization of the supermarkets. This however, was the continued weakness of the hypermarkets, the steadily losing customers, not compensate completely.

Despite the positive signals seen in the year-end business Corporations, however, is not a sustainable trend. From a Speakers recovery is in the opinion of Carrefour still too early. Also Metro goes for 2010, "challenging Market conditions "made.

For great is the uncertainty about future economic development, particularly the labor market, which is particularly in Germany, thanks to tools such as relatively short-time stable. Should companies due to persistently poor Operations but increasingly resort to layoffs, it will have an adverse effect on the Consumption and therefore impact on retailers.

   

Websites: www.carrefour.com
www.metro-group.de
www.tescoplc.com

-By Natali Schwab, Dow Jones Newswires
+49 (0) 69 29725 119, consumer.de @ dowjones.com
DJG / nas / has
Visit our website http://www.dowjones.de 


(END) Dow Jones Newswires

January 15, 2010 04:43 ET (09:43 GMT)

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