Casino has reported third quarter results, with total net sales rising by 1.3% to €9.1 bn. The performance was driven by its operations in Latin America, where total net sales rose by 11.0%, which offset a contraction of 5.0% in France. Same-store sales growth reached 1.5% during the quarter, with France rising by 0.2% and its operations in Latin America seeing same-store sales up by 3.0%.
France: sustaining strategy to embed growth
In its home market, Casino generated net sales of €4.59 bn, with total and organic growth contracting by 5.0% and 3.0% respectively. Same-store growth rose by 0.2%. The retailer highlighted its focus ‘to grow rapidly in buoyant segments’. It noted grocery ecommerce sales were up 16.3%, aided by its partnership with Amazon, while sales in the catering segment and of organic products were up 8.8% and 8.2% respectively.
Other highlights included the roll out of the Casino Max Extra subscription service, which had 110,000 members by the end of September, after being launched in June. Casino said it aimed to double this number by the end of 2019. The agreement with Amazon has seen 371 lockers added in its stores, while a Naturalia shop has opened on the site as well.
Hypermarkets and supermarkets lead same-store growth
Despite its focus on the fastest growing segments, Casino’s hypermarkets and supermarkets recorded the strongest growth in same-store terms. By banner the retailer reported:
- Monoprix: same-store sales rose by 0.3%, aided by ‘the organic, service counters and catering product categories drove performance in the food segment’, while grocery ecommerce drove growth, with sales up 30.1%
- Franprix: same-store sales fell by 0.3% during the quarter. Casino highlighted the initiatives being implement at the banner to improve performance, including the roll out of its new store design and expansion of its non-food offer through partnerships with Hema, Cdiscount and Le Drugstore Parisien
- Casino Supermarkets: same-store sales rose by 0.6%, with the performance boosted by organic products, up 12.4%, and in ecommerce, up 12.5%
- Géant Hypermarkets: same-store sales were up 1.1%. Food sales continued to strongly outperform non-food, with same-store sales for the former rising by 1.1%, while the latter contracted by 6.7%. Casino said the banner had benefited from the acceleration of its ‘shop-in-shop strategy, with the addition of beauty corners (Le Drugstore Parisien), coffee shops (Colombus Café), multimedia and household equipment (Cdiscount), jewellery (Maty and Piery) and optic’
Cdiscount performance driven by marketplace sales
During the quarter Casino said Cdiscount reported growth of 7.9%, with organic growth up by 9.0%, to €940.0m. The growth was driven ‘by ongoing marketplace expansion, monetisation revenues related to B2C services and the Cdiscount corners’. Traffic rose by 8.1%, to 245m visits, while mobile accounted for 73.1% of these visits, up from 65.1% in Q3 2018.
Performance in Latin America affected by slowing inflation in Brazil
Across its operations in Latin America, Brazil-based GPA and Colombia-based Exito, Casino said same-store sales rose 3.0%. For more on GPA’s results, read our story here, while Casino noted that Éxito had ‘recorded a further acceleration in sales growth in Colombia’.