Casino Pricing Increases 'A Short-Term Pain For Long-Term Gain', Says Analyst
A leading retail analyst has said that Groupe Casino's decision to steadily increase pricing at its French supermarket division is likely to impact the group in the short term, in terms of price perceptions, but it could help the retailer achieve its planned EBIT margin targets.
Bruno Monteyne of Bernstein Research was commenting following the publication of Casino's first-quarter results last week, in which the group reported that total gross sales under banner in its French operations rose by 0.8% in the period.
The group's Casino Supermarkets division remained stable on a same-store sales basis (+0.0%), the group reported, with the banner continuing its 'upmarket move' – sales of organic products, for example, are up 11.0%.
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