Weak sales highlight size of task facing incoming Carrefour chief

Carrefour, Europe’s biggest retailer, laid bare the pain being felt by austerity-hit shoppers, reporting a plunge in demand for discretionary purchases such as clothing and electrical goods and a deteriorating performance at its core French hypermarkets.

The weak first-quarter sales highlight the size of the task facing incoming chief executive Georges Plassat, who takes the helm in June with a brief to reverse years of under-performance.

Retailers across much of Europe are struggling as shoppers’ disposable incomes are squeezed by rising prices, muted wages growth and austerity measures, while confidence is sapped by the ongoing eurozone debt crisis.