Casino To Step Up Promotions As Cost-Of-Living Crisis Weighs On French Sales

By: Trademagazin editor Date: 2023. 02. 28. 09:36

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French retailer Casino vowed on Tuesday to spend more on promotions this quarter to help cash-strapped shoppers after sales at its Géant hypermarkets in France fell sharply in the fourth quarter of 2022 amid competitive pressure.

The performance in France will be closely watched after Casino and Teract earlier this month said they were in preliminary talks to combine their retail activities there within an entity controlled by Casino.

The company, which has been facing concerns over high debt and low cash flow, is scheduled on 10 March to report its full-year earnings, having said previously it was aiming for a good level of profit and improved cash flow generation.

In France, sales rose just 0.1% on a same store basis after rising 3.9% in the third quarter. That was below consensus expectations, which Jefferies analysts said stood at 2.7%.

Sales at French hypermarkets fell 6.2% on a same store basis and by 4% at French supermarkets, while sales at convenience stores rose 4.5%.

Casino is banking on an expansion of city centre convenience stores and e-commerce, notably home delivery via partnerships with Ocado and Amazon, to boost sales.

The group said it opened 352 new convenience shops during the quarter and 879 new stores over the year, exceeding its target of 800 openings.

ESM