Casino sells to Leclerc hypermarkets among the worst performers in France

The Casino Group announced on Saturday that it has made promises to sell six hypermarkets to Leclerc members, for a valuation of the walls and funds totaling 100.5 million euros. These hypermarkets are located in the towns of Castelnaudary (11), Saint Grégoire (35), Dole (39) Cholet (49), Anglet (64) and Castres (81). They had done "the object of marks of interest on the part of the Groupement E. Leclerc at the announcement, by the Casino Group, its desire to separate from a number of stores (hypermarkets, supermarkets, Leader Price) structurally deficit ". The agreements provide for the continuation of the employment contracts of the personnel of these stores in accordance with the legal rules.

The completion of the sales is expected in the first half of this year, subject to the prior consultation of the representative bodies of staff, which were met this Friday, January 18, and the fulfillment of the usual conditions precedents. The Casino Group has stated that "these hypermarket sales are distinct from the plan for the sale of non-strategic assets announced on June 11, 2018".

Hyper the worst performers

According to Casino, "these stores are among the worst performers in the park". They represented a pre-tax turnover of around € 150 million in 2018 and generated a total loss of about € 8 million in current operating income. The reduction of these losses will contribute to the growth objective of the current operating income of Casino's Retail business in France. The distribution group generated revenue in 2018, down 2.4% to 36.6 billion euros.

2018 "is a year in which the transformation and repositioning efforts of the previous three years are paying off," Group Finance Director David Lubek said during the presentation. "The underlying trend continues and is based on the relevance of our model," he said. This "is the result of a repositioning of all the signs to adapt them to the needs of our customers by focusing on the best formats and the best geographies".

In France, "We have the best year in five years, growing (+ 1.4%), despite the movement of + yellow vests + in the fourth quarter, with same-store growth of 1.3% over the year and a volume of total business, which includes e-commerce, up 2.8%said Lubek. Sales in France also posted growth of 1.4% in the fourth quarter, after 2% on the previous three, which makes Casino say that, despite the social context, "the group's signs showed good resistance".