Brussels, July 30 - Belgian discount supermarket chain Colruyt reported on Thursday a 6.6 percent rise in first-quarter sales with its discount formula continuing to attract consumers who are turning to cheaper goods.
Sales in the first quarter of the group's 2009-2010 financial year rose to 1.67 billion euros ($2.35 billion).
A Reuters poll of 10 analysts had forecast first-quarter revenues of 1.66 billion euros.
The group said summer weather had had a positive impact on consumption of typical summer products in the first quarter.
Consumers were also more focused on cheap prices because of the recession and were therefore shopping increasingly at discounters such as Colruyt, it said.
"Through the consistent implementation of its lowest prices strategy Colruyt continued to gain market share," the group said in a statement.
Colruyt competes with German hard discounters Aldi and Lidl, France's Carrefour and high-end Belgian retailer Delhaize.
Sales in the April-June period were also affected by a "normal" level of inflation, the group said.
"Today however inflation continues to drop (with decreases in prices for fruit and vegetables), which implies that the sales in the rest of the year will have to do without last year's inflation bonus," it said.
The Belgian Economics Ministry said earlier on Thursday that inflation in Belgium was negative for the third consecutive month, at -1.68 percent year-on-year.