Carrefour Malaysia aims for 6% sales growth in 2006

Carrefour Malaysia is confident that it will achieve a six per cent like-for-like sales growth in its current business year ending December 31. Last year the French hypermarket operator’s sales in Malaysia were MYR1.1bn (US$290mn) and in the first two quarters of this year like-for-like sales grew by 8.3 per cent (Q1) and 5.9 per cent compared to the same quarters in 2005.

The 8.3 per cent sales increase in the first quarter of 2006 was the best performance of a Carrefour operation in Asia. The 5.9 per cent increase over the second quarter was the second-best performance of an Asian Carrefour operation, after China. Managing director Safie Shamsuddin explains this business growth to a succesful pricing strategy. Last February Carrefour Malaysia cut prices of 1,200 items.

“Our 1,200-item price cut has been very succesful”, Shafie told the New Straits Times Press. “It has created loyalty in terms of customers who are able to identify us as the hypermarket which gives best in terms of price for our products.” The price perception is even more important as consumer sentiment is also impacted by high prices for fuel and electricity which pressures the spending power of Malaysian consumers.