Despite some signs of recovery at Monoprix, the Casino group continues to go through a difficult period. Between falling sales, disposals and costly investments, the distributor will unveil a strategic plan in mid-November to regain its balance.
Costly investments to modernize Monoprix and Franprix
The Casino distribution group, purchased in March 2024, presented a disappointing report for the third quarter of the year, with turnover down 1.8% to reach 2.1 billion euros. Although the drop in sales has eased slightly compared to the previous quarter (-3.8%), the distributor's figures still reflect a complex situation. At the same time, adjusted Ebitda (profit before interest and taxes) stood at 403 million euros over the first nine months of 2024, a marked decrease compared to the 530 million recorded the previous year.
Monoprix, however, represents a more optimistic note, with a slight rebound of 0.9% in its turnover, contrasting with the drop of 1.2% for Franprix and that of 4.5% for ultra-proximity brands. like Spar and Petit Casino. The group's e-commerce subsidiary, Cdiscount, also suffered, with turnover down 8.1%.
Philippe Palazzi, the new general manager who took charge in March, emphasizes that the group's transformation is now based on a model focused on franchising and the closure of loss-making stores. Since the start of the year, 449 unprofitable points of sale have been sold.
What future for Casino and the brands in difficulty?
To revitalize its flagship brands, Casino has launched ambitious modernization programs. At Franprix, the “Oxygène” project aims to transform stores by revising the layout and reducing the prices of certain essential products. The first renovations show encouraging results, with a 54% increase in sales in the weeks that follow. For Monoprix, managed since September by Alfred Hawawini, a new concept, “Connivence”, is in progress. Efforts are focused on lowering prices and modernizing stores, with the aim of making the brand more competitive.
However, these transformations are proving more costly than expected: the modernization of the 600 Monoprix points of sale is expected to cost one billion euros, well beyond the budget of 300 million euros. per year announced by Daniel Kretinsky, the majority shareholder. This gap raises questions about the financing of these projects.
Faced with the heavy investments required, Casino could turn to new asset sales to finance its modernization. Ultra-convenience brands, which are showing disappointing performances, could be the subject of new transactions. Managing Director Philippe Palazzi is due to present a strategic plan for 2028 on November 14, in which he will detail the measures envisaged to consolidate the group's finances and maintain its place in the local commerce sector.
