Groupe Casino has announced details of a new 'transformation plan', which will see it focus more on the convenience channel, cut jobs, and sell underperforming stores.
The group, which was recently taken over by a consortium led by Czech billionaire Daniel Kretinsky, also plans to increase its efforts to 'share know-how between banners', and increase efficiency across its operations.
'This plan will secure the Group's long-term future and make it gradually more agile so that it can ultimately return to growth and become France's leading convenience store retailer,' it said in a statement.
It also plans to invest €1.2 billion in store modernisation between now and 2028.
In the first quarter of its financial year, Casino reported a 3.8% decrease in sales on a same-store basis.
Job Losses
Between 1,293 and 3,267 job losses are expected as the group embarks on its transformation plan, with the retailer saying that the final impact in terms of job losses is dependant on it finding a buyer for its hypermarkets and supermarkets.
'The employment protection plan is part of a wider transformation plan that has become essential to securing the group's long-term future and its recovery, it said.
In terms of its focus on convenience, not to mention its current financial predicament, Casino said that it is 'imperative' that it adjusts the size of its support functions at head office level and in its logistics network, and is seeking to pool various functions to drive efficiency.
' This would result in a more integrated organisation, with cross-functional support services pooled to share know-how between banners and improve overall efficiency,' it said. 'In the future, brands could work better together, innovate and adopt each other's best practices.'
Purchasing Partnerships
Casino is planning to strengthen its purchasing partnership with Intermarché, as well as extending the partnership to Auchan, thereby establishing a set of 'powerful alliances' representing a market share of almost 30% in the French market, covering both food and non-food purchasing.
This plan will enable the business to 'improve its competitiveness in purchasing, despite its reduced size', it said.
It is also planning to undertake efforts to 'restore the quality of the customer experience in its stores', with the goal of becoming France's leading convenience player.
