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February 2015
Scope
Disclaimer
Euromonitor International
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
STRATEGIC EVALUATION
Saint-Etienne, France
Regional involvement:
Category involvement:
Hypermarkets/
supermarkets,
convenience stores,
discounters, electronics
and appliance specialist
retailers, drugstores/
parapharmacies, internet
retailing
Euromonitor International
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STRATEGIC EVALUATION
Financial analysis
n FY 2014, Casino's revenues grew by a healthy 16%
to reach 49 billion. Growth was driven partly by
boosted by the fully-consolidated results of GPA and
Monoprix, acquisitions from 2012.
owever, the company enjoyed organic growth at all of
its international subsidiaries, which saw collective
revenues rise by 24%. Latin America was the key to
this performance, with the success of the Assa cashand-carry banner and the Minimercado Extra
convenience store network in Brazil especially strong.
he company also undertook substantial repositioning
in France, significantly reducing prices and opening
stores in the most promising channels. The price
repositioning strategy rolled out at Gant and Casino
helped drive up footfall at Gant hypermarkets by 2%.
The French retail environment is stagnant, but the
companys convenience formats held firm.
asinos online business also saw solid growth, with the
Cdiscount site achieving a 16% increase in business
volume.
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STRATEGIC EVALUATION
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STRATEGIC EVALUATION
I
nternational expansion is now a key strategic goal for the company, with international operations representing over 60% of revenue
and
al
most 75% of trading profit in FY 2013. As well as wholly-owned stores, Casino also operates franchised stores outside France,
mainly in Africa and the Middle East. It also sells private label Casino and Monoprix products to retailers in markets as distant as
Hong Kong and the Philippines. This offers revenue possibilities, but also allows Casino to evaluate future expansion opportunities.
Euromonitor International
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STRATEGIC EVALUATION
Multi-channel presence
he company operates
across a broad spectrum
of retail channels with a
number of different
banners. This allows for
a more segmented offer,
as well as stronger retail
synergies.
WEAKNESSES
Global footprint
asinos international
sales are now the largest
and most dynamic part of
its business, and offset
the companys exposure
to the problematic
French retail market.
OPPORTUNITIES
International expansion
he company is
committed to growing
sales in new markets,
and has identified Africa
and the Middle East for
expansion in the short
term. Asia Pacific may
also hold potential.
Euromonitor International
France
lthough Casino is rapidly
reducing its dependence
on its domestic market,
and restructuring its
business there, 44% of
2014 values were
generated in this
stagnant retail market.
Hypermarkets may be
outdated
THREATS
Brand roll-out
asino sells many of its
private label products
via local partners in a
wide range of markets.
This strengthens brand
equity and may pave the
way for new market
entry.
Price pressure
asino has invested
heavily in price cutting in
its domestic market.
Reportedly, this has
helped sales stabilise,
but may undermine
long-term growth.
STRATEGIC EVALUATION
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
COMPETITIVE POSITIONING
B:2010-2012: A series of
C: 2013-2014: Consolidation of
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COMPETITIVE POSITIONING
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COMPETITIVE POSITIONING
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
DOMESTIC STRATEGY
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DOMESTIC STRATEGY
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DOMESTIC STRATEGY
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DOMESTIC STRATEGY
his saw Casinos supermarkets sales jump by a CAGR of 11% over the review
period. This is strategically a strong move; many French consumers are less
willing to drive to shop, and prefer the convenience of urban supermarkets.
Food accounts for a smaller percentage of household budgets and time spent
shopping has fallen. Monoprix is also more upmarket, with a strong
convenience alignment allowing Casino to preserve price positions in some of
its stores.
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DOMESTIC STRATEGY
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DOMESTIC STRATEGY
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DOMESTIC STRATEGY
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Long-term pricing
asino has invested substantially
in price cutting across its
network, in response to very
solid consumer price sensitivity.
This is understandable, but its
lack of scale compared to the
likes of Leclerc and Carrefour
make this a very challenging
strategy for the company.
lthough the effects of the
Eurozone crisis linger, and
consumer confidence is weak,
the company may find in the
long term that price cuts will be
difficult to sustain, hindering
sales and margins, and hurt
investment elsewhere in France.
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
INTERNATIONAL STRATEGY
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PASSPORT 23
INTERNATIONAL STRATEGY
Key Point: Casinos retail presence in Asia Pacific is confined to Vietnam and Thailand. Other regional
markets such as Indonesia offer potential to find partners or buy share. China may be out of the question.
Euromonitor International
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INTERNATIONAL STRATEGY
Key Point: Convenience stores is forecast to be the most dynamic store-based channel, and the company
may look to improve its position here.
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INTERNATIONAL STRATEGY
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INTERNATIONAL STRATEGY
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INTERNATIONAL STRATEGY
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INTERNATIONAL STRATEGY
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
MULTI-CHANNEL STRATEGY
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MULTI-CHANNEL STRATEGY
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MULTI-CHANNEL STRATEGY
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MULTI-CHANNEL STRATEGY
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MULTI-CHANNEL STRATEGY
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
Euromonitor International
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Euromonitor International
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eader Price is the companys primary discounter banner, and one that it has
invested substantially in. According to the company, by the end of 2014,
Leader Price had 1,001 outlets in France, including a drive-through clickand-collect service available at over 100 stores. The banner outperformed
the market over the review period, as rising price sensitivity drove demand.
t the same time as German discounters Lidl and Aldi are investing in their
outlets by improving their offer and trying to make themselves a credible
alternative to supermarkets, Casino is also innovating with its brand. In
January 2015, Casino launched a new concept in France called Leader
Price Express, basically a cross between a convenience store and a
discounter.
his will strengthen the brands local retail presence, offering low prices in
smaller stores ranging from 75 sq m to 300 sq m with varied offerings
ranging from 1,180 products at small outlets to 2,900 at 300 sq m stores. In
line with discounter strategy, 80% of these items will be Leader Price private
label products.
his cross-channel step is in line with other parts of the companys strategy,
although convenience stores have historically been better able to protect
prices within the limitations of their offer. Casino has been taking prices
down in other parts of its business, but may risk cannibalising sales in its
convenience store business.
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Euromonitor International
Above - Casino has distribution and franchising agreements in a large number of small,
possibly marginal markets. These include St Martin, Guadeloupe, Martinique and
Guyana in Latin America, Senegal, Burkina Faso, Niger, Benin, Congo, Cameroon, Togo,
Cte dIvoire and Gabon in West Africa, Kuwait, Qatar and Bahrain in the Middle East
and Hong Kong and Singapore in Southeast Asia. None of these is likely to deliver
massive revenue, but all help to build brand equity and could be used as bridges to
larger neighbouring markets.
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
OPERATIONS
21.5
Market
Retail name
France
126
Casino supermarkets
444
Franprix supermarkets
885
Monoprix supermarkets
585
619
Number of stores
1,314
Spar superettes
930
161
Vival superettes
1,688
Source: http://www.groupe-casino.fr/en/activities/france
Euromonitor International
PASSPORT 44
OPERATIONS
Number of stores
15
7
138
168
17
213
113
75
164
397
601
85
145
415
91
3
2
28
24
PASSPORT 45
OPERATIONS
Retail name
Thailand
Big C hypermarkets
119
Big C supermarkets
30
21.5
Vietnam
Euromonitor International
Number of stores
278
Pure
132
Big C hypermarkets
25
Superettes
10
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STRATEGIC EVALUATION
COMPETITIVE POSITIONING
DOMESTIC STRATEGY
INTERNATIONAL STRATEGY
MULTI-CHANNEL STRATEGY
BRAND AND PRIVATE LABEL STRATEGIES
OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
Key recommendations
Online delivery may add value
asino has a well-established
online operation in France, and
has shown itself to be an
adventurous and innovative
retailer. Its completion of the
Monoprix acquisition in 2013, a
more premium positioned fascia,
gives it a platform to develop
home delivery, at least in the
more compact and affluent
Parisian market. Online delivery
remains underdeveloped in
France, and this could be a good
opportunity to differentiate itself
from peers such as Carrefour. At
the same time, it could offer
greater value protection at a time
when the company is engaged in
price slashing throughout most of
its domestic and international
businesses.
Euromonitor International
Segmenting value
he company has rejigged much
of its retail portfolio over the
review period, partly thanks to
acquisition and also as part of a
strategy to have the most
effective offer. Much of its recent
activity in France has been
focused on the Leader Price
discount chain. French
consumer price sensitivity is
likely to worsen over the
forecast period, as the economy
shows few signs of recovery,
and as such Casinos strategy is
well timed. However, it could
also look to develop alternative
price positions in other parts of
its business, as the pursuit of
the lowest possible price will
limit margin development.
PASSPORT 48
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