Groupe Casino's annual domestic results have been greatly affected by its investment in Leader Price.
Leader Price, the group's hard discount arm, has warranted investment of some €125 million. Extra money has also been poured into the grocer's subsidiary Géant Casino to adjust to the current economic climate.
The ongoing price war in France has necessitated these fiscal injections, which have caused Groupe Casino's operating profit to fall from €555 million to €396 million.
Strengthening the retailer's discount subsidiaries was a requirement because of "the overall fall in prices in France," commented Jean-Charles Naouri, its CEO. "Sales volumes have been very good since the fourth quarter began. We are very positive about things," he added.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly.
