Belgium's largest discount food retailer, Colruyt, has announced that its net income fell significantly in the first-half of the year, down to €158.7m from €171.7m last year.
Core profit for the six-month period came in at €317.2m, up from €315.7m in 2010, whiles sales jumped 7.7 per cent to €3.83bn, the group said.
According to the group, overall results were hit by an unprofitable return from its expansion in the French market, as it cut prices and accelerated store openings, as well as a drop in consumer confidence in its home market of Belgium.
'The uncertain economic climate in the euro zone and the political deadlock in Belgium led to declining consumer trust with a consumption pattern changing towards first price products,' the group said in its financial statement.
Reporting on its French operations, Colruyt added: 'Investments in our price position and accelerated store expansion in an extremely competitive market led to negative results'
