Slowdown for Carrefour in China

 French retail giant Carrefour will cut the prices of selected goods, at some of it’s stores in China from Boxing Day to February 9th, to boost sales amid the global financial crisis. Even in this previously growing economy there are signs that trade is slowing.

Carrefour cut the prices of rice, cooking oil, candy, wine, gifts and other commodities, by between 20 to 30 percent.
The promotion, said to be the largest since Carrefour entered the Chinese market in 1995, would be initially launched at 23 Carrefour outlets in southern China regions, said Li Jia, media relations manager for Carrefour's South China division, "Carrefour is taking this move to answer the call of the central government to stimulate consumption and expand domestic demand. Te company also hopes to help consumers spend less against the backdrop of economic downturn."

Earlier this month, U.S. retail giant Wal-Mart started offering discounts of up to 20 percent on an average of 1,000 items at its 119 stores in China.

Analysts forecast retailing industry in China would experience a low season between February and April next year as the global financial crisis worsens.

"Retailers all hope to seize the market ahead of others through lowering prices," said Sun Xiong, chairman of the Guangdong Provincial Chain Store and Franchise Association.

The Lunar Chinese New Year, or the Spring Festival, will fall on Jan. 26. It is usually a gold season for shopping before and after the festival, the most important occasion in the Chinese year.

According to figures from the Ministry of Commerce, China's retail sales broke the 10-trillion-yuan (£1 trillion) mark in the middle of December 2008 and may amount to 10.8 trillion yuan by the end of the year, a growth of 21 percent over 2007.