Carrefour plans to expand and launch online sales in Brazil

Carrefour SA, Europe s biggest retailer, plans to invest 2.5 billion reais ($1.4 billion) in Brazil in the next two years to expand in the north and northeast regions of Latin America s largest economy.

The Paris-based retailer will also start Internet sales in Brazil in the first half of this year, it said today in an e- mailed statement.

Emerging economies in Latin America and Asia have been driving sales growth at the retailer, compensating for declines in France and the rest of western Europe, which together represent more than three quarters of overall revenue. Sales in Brazil and the rest of Latin America gained 20 percent in the three months through December, while Carrefour s total revenue rose 1 percent, curbed by the recession in France and Spain.

Carrefour denied speculation in October that it was planning to sell its operations in Brazil and in China, which are among its fastest-growing markets.

The retailer competes in Brazil against larger rival Companhia Brasileira de Distribuicao Grupo Pao de Acucar, which is partly owned by France s Casino Guichard-Perrachon SA. Bentonville, Arkansas-based Wal-Mart Stores Inc. is the third- biggest supermarket operator in Brazil.

Pao de Acucar said yesterday it aims to boost its investment in Brazil by as much as 72 percent to open 300 stores over the next three years. Walmart, the world s largest retailer, plans to raise investment in the country by as much as 38 percent to open 110 stores this year, it said on Dec. 21.