Thursday 30th August 2012, 11:39 London
Carrefour reveals dip in profits
The retailer's new CEO is preparing to announce a turnaround plan to combat the slide in crisis-hit Europe
French retailer Carrefour has reported a drop in profit for the first half of 2012 due to poor performances in countries hit hard by the economic crisis, including Spain and Italy.
Also to blame were sluggish sales in its French hypermarkets and rising distribution and labour costs in China, contributing to an 8.2 per cent fall in underlying profit to some €769m.
Georges Plassat, who took over as CEO in May, is reportedly due to map out his strategy to halt the decline in Carrefour's main European markets, where it has suffered rising competition from specialist stores and consumer tendencies toward local and online shopping.
The retailer this week revealed plans to cut 500-600 jobs in France as a means of "boosting efficiency and reducing overheads" and also announced the closure of its Singaporean operations by the end of the year.