Casino has reported Q4 2012 sales of €12,856m, up 35% on a total basis following the full consolidation of Latin American operations and up 3% on an organic basis. While international sales grew by 76% during the quarter, domestic sales declined 3% as household consumption lagged.
For a detailed sales breakdown click here.
French hypermarkets down more than 10%
Net sales in France declined by 3.1% in Q4 2012 to €4,757m, with Geant hypermarkets experiencing a 12% decline in sales, or 9.9% on a same-store, ex. calendar basis. Supermarkets were down 2.2% (-7% on a same-store basis), with small stores marginally negative. Monoprix, the group's upmarket food and clothing business, reported stable sales. The most significant deterioration is in the group's hypermarket estate, reflecting the impact of price drops, lower promotional activities and reductions to retail space. Same store food sales were down 7.6% at hypermarkets reflecting the challenging market conditions through the quarter.
Price and private label areas of focus to arrest sales decline
Casino is focusing on lowering prices for private label and entry price products across its hypermarket, supermarket and Franprix stores. These products account for more than 40% of sales volumes. Management state this is a proactive policy, funded by lower promotional activity, that has had a clear negative impact on same store sales. In addition, the retailer continues to reduce prices for national brands.
International and online providing top line support
In France, the group's online pure play CDiscount business reported growth of 16%, with toys and technology products performing well in December. Marketplace now accounts for nearly 10% of the site's business, while mobile sales also account for 10% of business. There are now 3,000 pick up points in stores as the group rolls out its multi-channel plans. International sales grew by 8% in Latin America and 16% in Asia on an organic basis, with similarly strong same store growth. While the top line is distorted by the full consolidation of GPA in Brazil in July 2012, both of the group's regions (LatAm and Asia) continue to deliver strong growth and now account for the majority of group sales. For more information on Big C's performance, click here.