International Supermarket News

Casino, the French supermarket chain, has announced that profits fell 4.5% in 2009, impacted by the poor economic situation in France as well as investments in store base optimisation.

French sales fell 3.8%, or 2.7% ex petrol. Convenience formats performed well, with sales falling only 1.7% and margins remaining at 4.9%. In the discount sector, Leader Price was adversely affected by consumers' scaled-back spending habits. Elsewhere, costs were effectively controlled, softening the impact of falling sales.

Internationally, Casino saw strong performances in South America and Asia, at 5.7% and 5.1% respectively. Total international trading profit rose 12%. Brazil saw particularly good results, with same-store sales rising 12.7%.

'In a difficult economic environment, Casino recorded solid results in 2009 while significantly improving its financial flexibility,' said Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino. 'Far-reaching action has been taken by our teams over several years to establish the Group in the most promising retail formats and geographic markets, and this action is continuing to pay off. Our leadership positions, solid fundamentals and expansion programmes position the Group for growth and market share gains in 2010 and beyond.'

Casino saw margins fall in Venezuela, where its Exito chain was recently expropriated by Hugo Chavez.