Groupe Casino has posted a 3.2% increase in same store sales in the second quarter of the year, with its France division posting a 1.8% gain.
The retailer said that organic growth was up 5.2%, compared to 3.1% growth in the first quarter of the year. Sales totalled €8.916 billion for the quarter.
Domestic Performance
Its French operation was boosted by 1.4% same store growth at its Monoprix operation (+ 2.1% on an organic basis), benefiting from ‘good momentum in food and Parisian stores’, the retailer said. Franprix rose +1.3% on a same-store basis, driven by new format innovations, while Casino Supermarkets were up 1.4%.
Its Géant hypermarkets division saw same-store growth of 2.8%, of which +4.3% was seen in food. This was due to both a rise in customer traffic and the successful rollout of the ‘CDiscount Corners’ in stores. Organic growth at Géant hypermarkets was up 3.2%.
Elsewhere, its convenience division saw same-store growth of +0.2%, while Leader Price’s same-store growth was 2.2%.
Leader Price did see a marginal decline in organic sales, however, of 0.7% - this was due to store closures relating mainly to renovation work, the retailer said.
E-commerce And Latin America
Groupe Casino’s e-commerce arm, Cdiscount, continued to perform strongly, posting growth of 9.0%in gross merchandise volume and +6.4% in organic sales.
Casino said that GMV at the business was driven by increased presence of CDiscount in bricks and mortar operations, as well as increased sales from ‘Cdiscount à volonté’ loyalty programme customers. CDiscount recently announced plans to offer its products to countries neighbouring France.
In Latin America, sales were up +9.7% organically and +4.4% on a same-store basis.
Its GPA Food operation in Brazil posted organic growth of +11.7%, led by ‘Multivarejo’s sharp recovery and Assaí’s good performance’, Casino said.
Elsewhere, Éxito Group (excluding GPA Food) saw a sequential improvement in organic and same-store sales compared to the first quarter.
‘In view of the estimated and unaudited results for the first semester 2018, the Group already confirms all its annual objectives’, Casino said.
Analyst Viewpoint
Commenting on its performance, Barclays European Food Retail Equity Research said, 'Casino’s performances in 2Q marked a sequential improvement in France.
'However, they should be seen in the context of the group’s decision to raise the prices at some of its banners in France since the start of the year, according to the monthly price survey carried out by Olivier Dauvers/a3Distrib.'
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
