Casino reports on challenging Q3

Date : 13 October 2016

France-based Casino said that in its third quarter total group sales rose 6.7%, to €10.4 bn, the quickest pace of growth in 13 quarters. Despite the positive headline the retailer saw total growth contract in its home market, by 1.1%, while organic growth was flat, underlining the challenging nature of retailing in France during 2016.

Hypermarkets and supermarkets shine in France…

Casino said that its supermarkets and hypermarkets were the only channels in which it saw positive same-store growth, at 4.5% and 0.2% respectively. At its Geant Casino hypermarkets the retailer said that food sales had risen by 1.8% on a same-store basis, while sales of fresh products rose 4.3%. Casino continued to face challenges with its non-food ranges, where sales declined, although it put this down to ‘the impact of unfavourable weather on seasonal items’.

At Supermarchés Casino the retailer said that it had enjoyed a ‘good performance during the summer’, aided by a strong growth in footfall and the addition of both one company owned store and seven new franchise operated stores.

…But contractions in same-store sales seen in all other channels

In the rest of Casino’s France-based channels, though, the picture was different, with falls in same-store sales seen at every one. The company said that the performance had been affected by a plan to close 282 loss-making stores, albeit out of a total of more than 10,000, and the transfer of further stores to franchisees, which affected total sales, but boosted overall gross sales under banners, which it said ‘remained dynamic’.

At Monoprix, expansion – 10 stores were opened in the quarter and 89 in the last year – drove total sales, but same-store sales fell by 2.3% with food volumes down 0.5% and non-food sales also impacted.

Performance in Brazil and at Cnova previously announced

Casino’s subsidiaries in Brazil and its ecommerce subsidiary had already announced their third quarter results. For more on these divisions, see our coverage here, for Brazil, and here, for Cnova.