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Advertisement Europe's largest retailer Carrefour reports huge net loss Source: (AHN) Reporter: Linda Young Location: Paris, France Published: August 31, 2011 04:06 pm EDT Topics: Economy, Business And Finance, Company Information, Earnings, Economy, Business And Finance, Consumer Goods, Retail, Economy, Business And Finance, Economy European retail giant Carrefour reported a net loss or $360 million for the first six months of the year compared to a net profit of $140 million for the same period a year earlier. French company Carrefour is Europe's largest supermarket chain, and it is the world's second biggest retailer behind Walmart. It operates 9,500 stores in 32 countries. While warning that it expected its full-year profits would be down by 15 percent, Carrefour officials said the retail climate across Europe was increasingly challenging. Carrefour took a one-time $1.28 billion charge-off, blaming a drop in the value of its business in Italy. Earnings were down by 33 percent overall in Europe and by 40 percent in France, its core market. Company officials blamed a reorganization of its systems, which caused product shortages in inventory, along with increases in prices of raw materials for the steep drop in profits in France. Overall, Carrefour said it had also made mistakes in raising prices above its main competition, which led to a loss of sales. Management said they plan decisive action to return the company to profitability. Republish Email Facebook Digg Twitter Share Copyright © 2011 AHN - All rights reserved.Content including text, photos, videos, audio, graphics and logos may not be used for commercial purposes, reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium without permission and license from AHN. [ Close ] When publishing articles from AHN we require that you follow several simple rules and that you abide by our Terms and Conditions. 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