Groupe Casino Posts Marginal Decrease In French Same Store Sales
French retail giant Groupe Casino has posted a marginal decrease in same store sales in its home market (-0.6%) in the third quarter of the year, according to results posted this morning.
Its Géant Casino operation saw a 0.3% increase in same store growth in the quarter, however Leader Price was down (-2.7%), as was Monoprix (-2.3%). Franprix saw a marginal fall of 0.1% in same store performance.
'In France, total sales amounted to €4,760m and were shaped by two factors: a plan to close 282 loss-making stores (out of a total 10,521 stores), which had a negative -0.6% impact on sales,' the retailer said.
'In these conditions, gross sales under banners remained dynamic, rising by +0.7% (+1.4% for food) in Q3. Since the beginning of the year, gross sales under banners are up +2.1% (+2.5% for food).'
Following a conference call to discuss the results, Barclays European Food Retail Equity Research commented, 'There was admittedly some skepticism regarding the company’s reiteration of the FY16 French EBIT and FCF guidance, given the weak top line performances reported this morning and the company’s reluctance to communicate the level of operating losses it deconsolidated after the transfer of loss-making Franprix and Leader Price stores to franchisees.
'We consider that Casino’s earnings momentum remains weak and offers a limited visibility.'
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