12 July 2012 Last updated at 06:22 ET

Carrefour sales suffer in austerity-hit Europe

Carrefour sales in Europe have taken a hit

The world's second largest retailer, Carrefour, has reported a fall in sales with consumer spending being hit by the downturn in European economies.

Like-for-like sales fell 1.3%, excluding fuel and currency movements, in the three months to June.

Weak spending in Italy and Spain hit sales in Europe, and sales in its core French market also fell.

However, the weakness in Europe was offset to some degree by strong demand in Latin America and Asia.

The company has already shut 33 stores in Europe to cope with the downturn.

Second-quarter revenue was down 0.3% to 21.72bn euros ($26.5bn; £17.2bn).

The earnings release comes after chief executive Georges Plassat took over the company's reins in May in an attempt to turn around its European business.