France-based Casino saw consolidated net sales rise 8% at constant exchange rates, to €31.9 bn, in its 2020 financial year. However, they fell by 7.9% after considering exchange rate effects and hyperinflation and the falling price of fuel. The retailer’s full year results rose by 9% and by 8% in organic and same-store terms respectively.
France: +3.0% in same-store sales
Casino reported total net sales fell by 6.8% to €15.2 bn in its home market, while organic and same-store growth increased by 0.5% and 3.0% respectively. Same-store sales were boosted by its convenience banners, where they rose by 10.3%, the performance of its Franprix banner, where they increased by 7.1%, and its supermarkets, where same-store sales increased by 5.4%. Monoprix saw muted same-store growth, at 1.6%, while Casino’s hypermarkets suffered a contraction in sales of 2.3%.
France: growing focus aiding performance…
The retailer noted the impact of its growing focus on its growth formats, which it is giving priority to in 2021 as it looks to maintain its recent positive performance. It saw a ‘strong acceleration in the convenience formats in urban areas (Franprix, Naturalia) and semi-urban and rural areas (Spar, Vival, Casino Shop). The retailer said it opened 169 new stores under the banners in 2020. For 2021, Casino is looking to open 100 new stores in Q1 and a further 200 in Q2, underlining the pace and investment it is putting into the channel to get after the growth opportunity it provides.
…Supporting online growth
Grocery ecommerce was a strong source of growth too, with like-for-like sales up by 67%. Casino said the performance was aided by ‘the development of structurally profitable models’. It highlighted the different mechanics it was employing to win in the channel, from click and collect and home delivery, supported by in-store picking at its urban and convenience formats, and through its partnerships with Deliveroo and UberEats.
Casino also noted its partnership with Amazon, which had been extended to Lyon and Bordeaux, adding to the service’s presence in Paris and Nice. Finally, the retailer underlined the expanded use of its automated warehouse, which uses Ocado’s technology. The new O’logistique warehouse now serves 93% of the Greater Paris region, enabling shoppers in the area to order from a range of 27,000 SKUs through it Monoprix Plus service. Casino said Ocado’s technology was enabling it to reduce ‘order preparation time to six minutes for 50 items’. Since the launch of the Monoprix Plus service in March 2020, the retailer added Casino Plus in September 2020.
Latin America: organic sales +17.3% in 2020
In Latin America, Casino saw ‘strong organic sales growth’, with sales up 17.3%, driven by its cash & carry business, where organic sales increased by 29%. Sales rose 12% at constant exchange rates, although they fell by 8%, due to unfavourable currency affects, to €14.7 bn. Casino said its performance in Latin America ‘was driven by the excellent performance of Assai’, which had benefited from ‘the commercial format’s continued attractiveness and the success of [its] expansion strategy’. Elsewhere in the region, the retailer noted MultiVarejo’s successful turnaround strategy, which boosted same-store growth, while Exito ‘put in a good performance, reporting same-store growth of 7.5%.
Casino to sustain strategy into 2021
Following what it saw as positive results, given the operating environment, Casino is looking forward to 2021 with a renewed belief in its strategy. Given this it is aiming to open further convenience stores and drive ecommerce growth. To improve its profitability, Casino has said it will look to close unprofitable stores, while also looking to improve the profitability of existing stores through the implementation of further technological-based solutions. Casino will also look to drive revenue growth with its other non-retailing activities, Green Yellow, an energy subsidiary, and RelevanC, for data.