French food retailer Groupe Casino pledged to invest more over the next four years and refocus on convenience stores as it seeks to accelerate revenue growth in a new strategy plan led by CEO Philippe Palazzi.
Casino, France's seventh-largest supermarket group by market share, was brought to the brink of default last year after years of debt-fuelled acquisitions and a declining market share.
The group, whose French rivals range from Carrefour to discounter Lidl, will invest €1.2 billion ($1.27 billion) in gross capital expenditure between 2025 and 2028 to achieve a gross merchandise volume of €15 billion, for an increase of €1.9 billion from 2023.
That should allow Casino to achieve adjusted Earnings Before Interest, Taxes Depreciation and Amortisation (EBITDA) after lease payments of €500 million in 2028, it said.
Casino, which targets cumulate savings of €600 million over the period, said it aimed to achieve break-even free cash flow before dividends and financial expenses in 2026.
By 8:41 Casino shares gained 1.6%, having shed 97% so far this year.
Attempting A Turnaround
Now owned by Czech billionaire Daniel Kretinsky, Casino has been attempting a turnaround through job cuts, disposals of large loss-making stores and a refocus on inner-city convenience stores such as Monoprix and Franprix.
The slimmed down retailer now counts some 7,700 stores, staff of 25,000 and a market share estimated at around 3%.
"Today we are entering a new phase in the group's transformation," Palazzi said.
"Along with our franchisees and brands, our goal is to redefine convenience retailing to meet new consumer expectations: the right product and the right service at the right time, close to where you live ... at prices suited to everyone’s means," Palazzi said in a statement.
"That is why the group will be focusing on three key markets: day-to-day food shopping, Quick Meal Solutions and new everyday services" he added.
