French retailer Casino has said that it will start to reap the benefits of cost-cutting in 2015, which negatively affected profit margins in 2014.
The cuts, mostly applied in the Géant hypermarkets and its Leader Price discount arm, saw a boost in sales volume but a dip in revenue in 2014. Operating profit was down 2.5 per cent to €2.3 billion, according to Reuters.
Casino chairman and chief executive Jean-Charles Naouri has said that this drop was a result of the "repositioning of the group's discount brands" and that the "readjustment is now complete".
"For 2015, the group is confident about developments," he added.
French retailers have responded to squeezed shoppers' incomes by reducing costs, particularly to keep foreign discounters at bay.
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