From Rescue to Recovery: Casino’s New Chapter

Following a period of intense restructuring and near cessation of payments, the French distribution giant Casino is officially initiating its “recovery” phase this April. general Manager Philippe Palazzi announced the shift,emphasizing a strategic pivot towards lasting growth after navigating turbulent financial waters.

We go from rescue to the group’s recovery.

Financial Performance: A Mixed Bag

The group’s latest quarterly report reveals a complex financial landscape. While turnover experienced a slight dip of 1.2% compared to the first quarter of 2024, settling at 2 billion euros, there are signs of advancement. This decrease is primarily attributed to the strategic reduction of the local store network, with Casino divesting 466 points of sale during the quarter. However, sales figures demonstrate a positive trend, showing sequential improvement compared to the 1.8% decline observed in the final quarter of 2024.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decrease, falling by 6 million euros to 100 million euros compared to the same period last year.This reflects the ongoing impact of the group’s conversion efforts.

In an unfavorable economic context, commercial activity is maintained and financial performance remains impacted by the group’s transformation.

Strategic Refocus: local Stores and Service Expansion

Despite the mixed financial results, Casino’s leadership remains optimistic, reaffirming its strategic plan unveiled last November. The core of this plan centers on a significant refocus on local stores,including brands like Monoprix,Franprix,and naturalia.This involves enhancing the customer experience thru the development of in-store services and catering options.The ultimate goal is to achieve a balance of free cash flow after financial costs by 2026.

This strategy aligns with current retail trends that emphasize personalized experiences and convenience. For example, retailers like Kroger in the US have seen success by expanding their prepared foods sections and offering services like in-store pharmacies and banking.

Franchising Initiative: Expanding Reach in Île-de-France

In a move to further optimize its operations, Casino has announced plans to franchise 27 stores in the Île-de-France region. This initiative will be executed through a joint venture between monoprix and the family of Moez-Alexandre Zouari,leveraging their expertise in the local market.

Background: Restructuring and New Ownership

Casino’s current recovery plan follows a period of significant upheaval. The group narrowly avoided cessation of payments in 2023, burdened by debt accumulated under the previous leadership of Jean-Charles Naouri. Now under the control of Czech billionaire Daniel Kretinsky, Casino has undergone a deep restructuring process, including a social plan that eliminated over 3,000 positions. The group was also removed from the SBF120 index, briefly returning before being excluded again.