France-based, Casino-owned Cnova has released its financial results for FY2018. It has reported net sales of €2.2bn, driven by organic growth of 5.1%. The increase in organic sales was supported, it said, by the development of showroom revenues.
GMV: 9.3% increase to €3.6bn
Cnova reported an increase in gross merchandise volume (GMV) organic growth of 9.3% to €3.6bn. The retailer noted ‘organic growth accelerated throughout the year’, rising from 6.1% in Q1 to 11.9% in Q4. The pace of growth and its advancement through the year sets it up positively for 2019. Cnova attributes the growth to a positive contribution from its marketplace and the addition of Cdiscount corners in Géant hypermarkets.
Marketplace GMV: +12.3% to €1.1bn
Marketplace GMV grew by 12.3% in 2018 bringing its total GMV share to 34.3%. There was also a 37% growth in SKUs, which reached 48m by the end of 2018. Marketplace vendor services more than doubled in 2018 and now cover more than 25% of Cdiscount’s vendor base. GMV fulfilled by Cdiscount increased by 63%.
Cdiscount developed its loyalty programme…
Cdiscount’s loyalty programm3, Cdiscount à Volonté (CDAV), launched a new package in Q1 2018, which saw membership increase by 23%. CDAV-eligible SKUs increased by 14% to 281,000 by the end of December 2018.
…And opened 45 new Cdiscount corners in Géant hypermarkets
Elsewhere in the business, 45 new Cdiscount corners were opened in Géant hypermarkets, bringing the total to 49. Showrooms were also opened on the Champs-Elysées in Paris in early October 2018. Cdiscount has expanded its delivery service to cover more countries through European partnership marketplaces. It now delivers to 19 countries in Europe.
…As well as holding two major events
The banner held events for its 20-year Anniversary and for Black Friday in Q4 2018. Black Friday alone generated €57m GMV in one day with a peak of 23,000 visits per minute. Both events contributed to the 11.9% GMV organic growth in Q4 2018.
Commenting on the results, CEO Emmanuel Grenier said, “These strong results illustrate the relevance of our strategy, which reinforce our positioning as the leading French e-merchant. Building on our 2018 successes, we are now looking forward in 2019 to reinforce our growth and our profitability”.
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