Shares in French supermarket chain Carrefour slumped on Thursday after it warned 2017 operating profit could fall by around 12 percent. That in part, due to cut-throat competition, which as Kate King reports, has benefited other retailers like Germany's Metro.
The love of bagging a bargain has hit French supermarket chain Carrefour. The retailer posting a steeper-than-expected fall in first-half earnings, which saw shares in the company slump 14 percent on Thursday, setting them up for their worst daily dive in 20 years. The world's second largest retailer says cut-throat competition is to blame, a poor performance in its home market - dragging down profits. Carrefour's now warning its full-year operating profit could fall as much as 12 percent. You don't have to look far to see the challenges ahead. German retailer Metro reported a recovery in its quarterly sales. Highlighting growth in its core market, as well as France and Turkey. Its third quarter sales rose 4.9 percent to 11 billion dollars. Though decline in the Netherlands and Russia is keeping investor sentiment cool. Metro shares were down 2 percent in early trade ..compared to a 1.3 percent fall in the European retail sector.