Cnova: GMV breaks €1 bn mark in Q2 2020

Jon Wright
Head of Insight - RA EMEA

Date : 24 July 2020

Casino-owned Cnova generated gross merchandise volume (GMV) of €1.05 bn in Q2 2020, a rise of 23.5% on the same timeframe in 2019 and growth of 24.8% in organic terms. Net sales were €556.0m, a rise of 18.6% in total and by 16.9% in organic terms. The share of sales accounted for by its marketplace rose to 46.3% in 2020, versus 40.1 % in the previous year.

Performance accelerated in Q2…

Cnova reported organic growth for its GMV of 24.8% in Q2, versus 12.0% for the first half, underlining how its pace had seen a strong uplift in the second quarter. It said the performance was driven by its marketplace and direct sales. Marketplace GMV sales grew 39% in Q2 2020, which was supported by the fulfilled by Cdiscount service, which rose by 41% and accounted for 28.1% of total marketplace sales.

The number of members of its Cdiscount à Volonté loyalty programme increased by 10.3% in Q2. It said the programme had 2.2m members, who can order from a range of 1.3m SKUs for express delivery. The number of available products has risen by 19% versus the same period in 2019. The company noted the growing importance of express delivery, which it said was ‘a key driver of growth, customer satisfaction and CDAV development’.

…Aided by key achievements

Cnova generated a gross profit of €213m in H1 2020, with a gross margin of 20.3%, which showed a strong improvement on 2019’s figure. The increase in the share of sales accounted for by its marketplace, which reached 46.2% at the end of H1, helped its margin.

However, its selling, general and administrative expenses costs rose, by 7.9%, driven by rising fulfilment costs. This was partially offset by a decrease in marketing costs, due to an ‘optimised SEO performance that led to increased free traffic [which] combined with limited offline media campaigns during the Covid-19 lockdown’. In relation to its fulfilment options, the company said free home delivery was now available on all orders over €25, while delivery times had improved and, through its partnership with Agrikolis, had also added 35 new pickup points, taking its total to 135 at the end of the timeframe.