“Casino’s Price Drop: Will It Revive the Supermarket’s Sales and Attract New Customers?”

2023-05-04 15:33:00

Will this gesture be enough for Casino to revive itself? The distribution group announced Thursday a drop in its prices in an attempt to attract new customers, which have become more scattered recently.

Casino, which employs 200,000 people worldwide, including a large quarter in France, achieved 5.4 billion euros in turnover in the first quarter, a decrease of 1.8% in total. For France (excluding CDiscount), the decline is slightly more marked, at 2.3%, with sales totaling 3.27 billion euros.

This is a poor performance in a context of high food price inflation, measured at nearly 16% over one year in March. On the Paris Stock Exchange, Casino shares plunged 11.84% to 7.38 euros Thursday around 9:50 a.m. in a market down 0.30%.

Several takeover proposals

The group explains that it responded to the drop in sales by initiating “from December a substantial campaign to reduce prices”, “of the order of 5 to 10%” depending on the stores, and which “intensified on the end of the first trimester.

On April 24, Daniel Kretinsky had proposed to Casino to inject 750 million euros via a reserved capital increase of more than 1 billion euros in total, which would lead, if completed, to the loss of group control by Jean-Charles Naouri.

And Daniel Kretinsky is not the only contender: Casino is discussing a possible merger with the Teract group (Jardiland, Gamm vert, Boulangeries Louise), whose majority shareholder is the agrifood giant InVivo. At the end of April, the 3rd supermarket chain in France, Intermarché, joined these discussions.

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