Brazilian supermarket sales rose in February as the industry continued to resist the slowdown in the wider economy, the Brazilian Supermarkets Association, or Abras, said Thursday.

February sales were 4.2% higher, in real terms, compared with the same month one year ago, Abras said. Figures in real terms take into account inflation as measured by the government's official consumer price index, or IPCA.

"The result corroborates the thesis that the retail food sector is one of the last to feel the effects of economic crisis. However, the accumulated figure shows growth will not be as strong this year as in 2008," said Sussumu Honda, the president of Abras.

Supermarket sales are 5.4% higher over the last twelve months.

Brazil's economy slowed dramatically in the fourth quarter of 2008, contracting 3.6% compared with the third quarter and the economy could shrink in 2009. However, demand for food products remains strong.

In February, the IPCA gained 0.55%, taking 12-month inflation to 5.9%.

Brazil's largest grocers are Cia. Brasiliera de Distribuicao (CBD), or CBD; France's Carrefour SA (12017.FR); and U.S. retailer Wal-Mart Stores Inc. (WMT). French retailer Casino Guichard-Perrachon SA (12558.FR) owns a 34.3% stake in CBD.

-By Alastair Stewart, Dow Jones Newswires; 5511 3145-1479; alastair.stewart@dowjones.com