Cnova Q1 driven by marketplace growth

Date : 10 May 2021

Jon Wright

Head of Insight - RA EMEA

Casino-owned Cnova has reported a strong performance in its first quarter, with growth driven by the number of users buying through its marketplace rising strongly.

Marketplace represents 46% of GMV sales in Q1 2021

Cnova reported traffic, in millions of visits, increased by 18.9% to 294m in Q1 2021. More visits led to more orders, with the number rising by 16.9% overall, but with orders over its marketplace increasing by 30.3%. In volume terms this saw Cdiscount sell 12.6m items during quarter, a rise of 9.7% on 2020s figure. However, the number of items sold over its marketplace increased by 25% to 7.4m items.

In value terms, net sales increased 5% to €517.9m, while its GMV rose by 11.8% to €1.0 bn. Organic GMV sales rose by 13% to €997m. Underlining the growing importance of its marketplace, in the organic GMV sales figure direct sales were flat at €454.8m between Q1 2020 and Q1 2021, but marketplace sales increased by 34.3% to €380.5m. The disparity between growth rates for its direct sales and marketplace saw the latter channel increase its share of total GMV to 45.6% at the end of Q1 2021, up from 38.4% at the end of Q1 2020.

Express delivery supporting growth too

Cnova highlighted the addition of more SKUs eligible for express delivery through its marketplace as ‘a key driver of growth, [and] customer satisfaction’. The company also noted the importance the service adds to helping its loyalty programme, Cdiscount à Volonté (CDAV). Cnova said that the number of SKUs eligible for express delivery rose 18% quarter-on-quarter, to 1.4m.

Cnova finding new sources of revenue too

The retailer is also using its data and expertise in new ways to generate revenue from other parts of its business. It reported that digital marketing revenues increased by 42.9% in Q1 2021, which it said reinforced ‘Cnova’s most profitable activity’. This avenue of revenue generation was supported by its Cdiscount Ads Retail Solution (CARS), an advertising platform that enables both sellers and suppliers to promote their products and brands.

Finally, Cnova highlighted the acceleration of the growth at Octopia, its ‘turnkey marketplace solution for EMEA retailers and e-merchants’. This revenue stream saw GMV increased by 86.3% and covered 518 connected websites and enabled delivery in 27 countries.

For the latest insight on the online channel, visit the IGD hub page.

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