Brussels, July 28 - Belgian discount supermarket chain Colruyt reported a higher-than-expected 14.7 percent rise in quarterly sales on Monday as its low price strategy during high inflation paid off.
Sales in the April-to-June fiscal first quarter increased to 1.566 billion euros ($2.47 billion) from 1.366 billion a year earlier, topping the average forecast of 1.485 billion euros in a Reuters poll of 10 analysts.
Colruyt competes with German hard discounters Aldi and Lidl, France's Carrefour , and high-end Belgian retailer Delhaize , and has been increasing its market share, notably as consumers feel a sharp pinch from rising prices.
Belgium's annual inflation rate in June was 5.8 percent, the second-highest rate in the euro zone.
Chief Financial Officer Wim Biesemans told Reuters that Colruyt had gained market share over the quarter at a faster rate than the hard discounters, although did not say what the company's share of the Belgian market was now.
Delhaize's like-for-like sales in Belgium grew by just 0.4 percent in the April-June quarter, while Carrefour's Belgian sales fell by 4.4 percent.
Analysts have speculated that Carrefour could even leave the country.
Colruyt said in a statement that it had benefited from its low prices and launch of its "Extra" discount card, competition brought on by high inflation, and its decision to stay open on May 2 when other stores were closed.
Its retail business, including its Colruyt banner stores, increased business by 13.2 percent to 1.196 billion euros in the quarter. Wholesale and food services activities rose by 14.5 percent to 260.5 million euros.
Other activities, notably its DATS24 petrol stations, recorded a 33.5 percent rise in sales to 109.3 million euros.
Colruyt said it would be providing guidance for 2008/2009 consolidated net profit at its annual shareholder meeting on Sept. 17.
It told investors at the end of June that it expected sales of its Colruyt-banner stores growing by up to 7.75 percent this year. Biesemans said it was hard to give a figure now as inflation, part of the equation, was impossible to predict.