Friday, 20 Apr 2018
Business

In difficulty, Groupe Casino reinvents itself

After difficult years, the Casino group is back on the offensive. Reconciliation with Auchan and Amazon, launch of new delivery options, international deployment: Jean-Charles Naouri wants to make its group a central player in the distribution, leading the phygital. Competed by retail juggernauts, the group has no choice but to be disruptive.
The Casino Group is at a defining moment in its history. Directed by Jean-Charles Naouri, the distribution group brings together many brands: Casino Proximities (Spar, Vival, Le Petit Casino), Leader Price, Franprix, Monoprix, Monopoly, Géant and Casino supermarkets. Not to mention Cdiscount, the number 2 French e-commerce audience. A diversity of brands that has not prevented the group’s sales from melting 10 billion euros since 2013.
These commercial underperformance are reflected in the stock market. Since the beginning of the year, the share price of Casino has declined by 20% and now caps around 40 euros, which capitalizes the group to 4.5 billion euros. The equivalent of Monoprix’s turnover. Aware of the difficulties his company is going through, Jean-Charles Naouri has just announced a series of major strategic moves.
In France, Casino begins its moult
On April 3, Casino Group announced a merger with Auchan. The two distributors, which together generate 90 billion euros in sales, have begun negotiating a “global strategic partnership” for their food and non-food purchases. A new alliance that ” constitute a package that respects everyone’s interest: consumers, farmers and industrialists According to a joint statement.
If the connection with Auchan is an important step, it is especially the alliance between Monoprix and Amazon which made speak about her. The urban brand of the Casino group will start selling, in the year 2018, food products in a virtual shop Amazon Prime Now. Reserved for subscribers of the American giant, Prime Now allows delivery within one hour (7.90 euros) or in slots of two hours (3.90 euros or free if the order exceeds 40 euros of purchases). Prices will be the same as those charged on Monoprix.fr.
The brand therefore has good growth prospects in France. And it should last, because Amazon is not the only player that Casino has come closer to expand its delivery offer. Since 2016, with its “Shop1h” service, Monoprix delivers its customers on foot in less than an hour, within a radius of 500 meters around its stores. And, since November 2017, an agreement with the food distribution platform of the British Ocado should allow the creation, within two years, of a cyber-warehouse delivering, within 24 hours, the Paris region, Normandy and Hauts-de-Seine. of France.
Despite its 12,000 stores around the world, 220,000 employees and net sales of 38 billion euros in 2017, the Casino Group knows that it faces global retail giants. That’s why he ” compensates for its relative small size by innovative strategic options, Yves Martin, director of Wavestone. He thinks in rupture, because he does not have the critical weight to impose himself “. The partnership with Amazon is part of this logic and is “a response to this need to move the lines,” concludes the expert.
If only 55% of French people have already made a food purchase online, the year 2018 could mark a turning point. For Jean-Charles Naouri, the delivery J + 1 represents the future of the sector. A format specifically adapted to races ” family Families who can choose up to 12,000 products delivered from peri-urban warehouses or hubs in the city. A real challenge for a group that has made customer satisfaction the heart of its success. While it is still too early to know whether these strategic decisions will prove to be successful, the group already seems to be consolidating its market share. While over the last period studied, Carrefour, Carrefour Market and Carrefour Drive lost 0.5 points, and Auchan 0.2 points, while Géant et Casino’s share rose by 0.2 points. points, thanks to the very strong growth of the baskets at Géant (+3.2 to 36.2) and the high recruitment rate of Casino (+180 000).
Internationally, Casino conquers Cameroon
It is not only in France that the Casino group goes on the offensive. In Cameroon, the brand has just launched the first Casino Cash & Carry, called “Bao”, in the city of Bassa. This is the very first experience on the African continent of the concept of Cash & Carry, a technique of wholesale, at low prices and at decreasing prices depending on the volume of goods purchased. A system already successfully tested by the group in South America.
Julien Masset Strategy Consultant

Post Comment