Aug. 31 - Europe's No.1 retailer Carrefour, warned 2011 profits would slump 15 percent as it cuts prices in a bid to reverse market share losses and battles an 'increasingly challenging' economic environment. Hayley Platt reports.
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Europe's largest retailer has issued its fifth profits warning in less than a year as sales in Europe slump.
Carrefour warned full-year profits would be down 15 percent after poor performances in many of its European stores.
The French group said the economic climate was 'increasingly challenging' in Europe but expected business in emerging markets to continue growing.
The news comes as the group reports a fall in second quarter operating profits of 40 percent in France alone.
Carrefour plans to get its house in order by reducing operating costs, lowering prices in store and revamping its core hypermarket business in Europe after years of underperforming.
The group which operates more than 9,500 stores in 32 countries is part-way through a three-year programme aimed at returning the business to profit.
It's pledged to turnaround its sluggish performance but indicated things could get worse before they get better.
Shares fell four percent in early trade - they've plunged 40 percent so far this year hitting their lowest for more than 10 years this month.
Hayley Platt Reuters.
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