Casino Group's Strategic Shift: Recent Store Disposals Explained
Casino Group Completes Key Store Disposals
Casino Group has reached a significant milestone, recently finalizing the sale of its controlling stake in a total of 60 stores. This strategic move was announced on 30 September 2024, concluding a deal that had been in the works since agreements made on 26 May 2023. The stores were sold to Groupement les Mousquetaires, a partner that already held a 49% interest in them since September of the previous year.
Acquisition of Codim 2 by Rocca Group
In addition to the store sales, Casino Group revealed that Rocca Group has acquired 100% of Codim 2. This acquisition includes all employees from the disposed stores, ensuring a seamless transition for the workforce. These stores will continue to operate under the Auchan brand, allowing for a familiar shopping experience among consumers.
Focus on Convenience Brands
With these recent changes, Casino Group is determined to narrow its focus on convenience retailing. The group now boasts nearly 8,000 outlets nationwide under well-known brands such as Casino, Vival, Spar, Naturalia, Monoprix, and Franprix. The shift indicates a conscious effort to streamline operations and enhance the footprint of these convenience brands, making them more accessible to customers.
Job Security and Employment Protection Initiatives
As part of the restructuring process, Casino Group has prioritized the job security of its employees. By continuing operations in Corsica with 18 stores and approximately 380 on the mainland, they have managed to protect jobs for over 17,000 people. Furthermore, the group has established agreements with trade unions relating to an Employment Protection Plan, ensuring that affected employees will have options, including voluntary redundancy and internal redeployment.
Adapting to Market Changes
The group’s decision to sell its hypermarkets and supermarkets is a direct response to evolving market demands and consumer shopping patterns. The focus on smaller, convenience-driven outlets is reflective of a broader industry trend. Casino Group aims to adapt to these changes, ensuring sustainable growth while maintaining a loyal customer base.
Future Efforts and Challenges
Despite the progress made, Casino Group acknowledges that it still faces challenges in finding buyers for nearly 20 stores and four logistics platforms without prospective buyers. The company is committed to actively seeking solutions that address these complexities, ensuring that they meet their operational goals while safeguarding employee welfare.
Frequently Asked Questions
What prompted Casino Group to sell its stores?
The sale is part of Casino Group's strategy to focus on convenience retailing and streamline its operations.
Who purchased the stores from Casino Group?
The stores were sold to Groupement les Mousquetaires, which had previously held a minority stake in them.
How many stores are currently operated by Casino Group?
Casino Group currently operates nearly 8,000 outlets under various convenience brands.
What measures are being taken to protect employee jobs?
Casino Group has implemented an Employment Protection Plan to offer options like voluntary redundancy and redeployment to affected employees.
Are there any remaining challenges for Casino Group?
Yes, Casino Group is actively searching for buyers for 20 stores and four logistics platforms that currently have no buyers.
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