France-based Casino has reported first quarter results saying same-store sales rose 3.0% at a Group level. A flat performance in its home market, with same-store sales, including Cdiscount, contracting by 0.1%, was offset by its performance in Latin America, especially Brazil.
Casino highlights ‘strong growth in buoyant segments’ in France
Casino reported total sales in France fell by 3.3%, to €4.4bn, while organic growth contracted by 1.5% and same-store sales, excluding Cdiscount, were flat at 0.0%. Its performance was affected by store closures, with it noting the closure of 109 Leader Price stores over the last 12 months, and the continuing effects of the protests at the end of the year.
Casino said that its performance was aided by its focus on ‘buoyant segments’, saying that sales of organic products had risen 11% in Q1, with food ecommerce sales up by 11% too. By banner, Casino said:
Monoprix: its performance was aided by a rise in customer traffic, of 1.7%, with net sales of organic products up by 9.7% and food ecommerce sales rising by 11.8%. The latter figure was helped by its partnership with Amazon, which covers all of Paris and 35 border towns;
Franprix: on the positive side, Casino said customer traffic rose by 2.0%, while sales of organic and catering products were up by 4.8% and 12% respectively. The retailer said the roll out of the Bibi digital loyalty programme continued, which it said reinforced ‘the personalisation of the offer in real time’;
Géant hypermarkets: food sales continued to perform well, on a same-store basis, with sales of organic products, which rose 7.4%, and ecommerce sales, which increased by 11.2%, helping overall results. Casino noted the positive impact from the roll out of “…le drugstore parisien” store-in-store concept at three stores.
At its other banners, Casino noted, again, the strong sales of organic products, roll out of digital initiatives and the benefit of further franchising within its convenience store operations.
Cdiscount boosted by sales through its marketplace
Casino said at Cdiscount, its GMV (gross merchandise volume) including taxes rose 6.1% on a reported basis and by 9.2% on an organic basis. While direct sales fell by 3.0%, this was more than offset by an 11.7% rise in sales through its marketplace. The growth in sales through its marketplace meant that the channel accounted for 35.8% of total sales at the end of Q1 2019, versus 32.6% at the end of Q1 2018.
Same-store sales rise by 6.0% in Latin America
Casino said in Latin America same-store sales rose 6.0%, while organic sales were up by 11.4%. This was boosted by the performance of its Brazil-based GPA division, where same-store sales were up by 7.1% and organic sales rose by 13.8%. It said this was aided by ‘the continuous very good performance of Assaí, where same-store and organic sales rose by 10.3% and 25.8% respectively.
The retailer said a positive performance was recorded across its banners, with ‘double-digit growth in sales, customer traffic and volumes’ at its new Compre Bem and Mercado Extra formats, while Pão de Açúcar was aided by a ‘good performance’ at renovated “G6” and “G7” stores. In the online channel, food sales were aided ‘by the expansion of click & collect and express delivery services’.
Casino said Éxito Group had ‘delivered a good performance’ in the first quarter and would report its results in May.
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