Two of Europe’s largest retailers closed 2020 with strong sales growth. Ahold Delhaize ended the year with sales of 74.7 billion euros, a growth of 14.2%. E-commerce sales increased and more than anticipated, to 7.6 billion euros, or 67.4% in 2020. The retailer performed better than expected in all of the eleven countries in which it operates.
Carrefour achieved its best performance in two decades with an LFL turnover growth of 7.8% to 70.7 billion euros. Best performing markets were Belgium (+8.3%), Spain (+7.1%) and Latin America (+23%). Online sales rose by more than 70% to 2.3 billion euros. Private label sales increased to 29% share of overall sales.
The retailers’ sales growth can, of course, be attributed to the Covid crisis, which caused a shift in consumption from out of home to in-home. On the other hand, the crisis also forced both companies to incur higher costs and make investments, which has put pressure on net profits. Profit for Ahold Delhaize fell from 1.8 to 1.4 billion euros. Carrefour’s net profit fell 43% to 641 million euros.