Brazil and southern Europe drove sales growth in the first quarter at Carrefour as its turnaround strategy gained traction. The world’s second biggest retailer said it was comfortable with market expectations of higher full-year profits.

Shares were up almost 4 per cent in late trading as Spain’s improving economy boosted the grocer while price cuts and store revamps boosted Italian sales.

Same-store sales in Brazil, Carrefour’s largest market after home base France, rose 9.9 per cent.

It has weathered recession in Brazil better than French peer Casino or US rival Wal-Mart as it sells mostly food which is less vulnerable to reduced consumer spending. It also controls cash-and-carry operator Atacadao, which analysts said was “the perfect positioning for a stressed Brazilian consumer”.