French mass-market retail group Casino has unveiled a comprehensive ‘transformation plan’ aimed at prioritising the convenience channel and streamlining operations.
This strategic shift follows a year of significant net losses amounting to €5.66bn ($6.12bn) amid challenging market conditions.
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The plan includes resizing support services across its headquarters and logistics network, which could lead to a reduction of up to 3,267 jobs.
The reorganisation will result in 1,293 net job losses at the company’s head office functions, including 554 positions at the Saint-Étienne head office.
A further 1,974 job losses are expected with the closure of hypermarkets, supermarkets and certain logistics platforms if the company fails to find a buyer.
Despite this, the retailer said that it will create or consolidate more than 200 roles in Saint-Étienne, some in connection with the re-internalisation of certain tasks.
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By GlobalDataPost-restructuring, the Saint-Étienne headquarters will maintain 1,010 positions from the current 1,564.
Casino’s strategy is to secure its long-term viability, enhance agility, reignite growth and become the leading convenience store retailer in France.
The retailer summoned works councils of the affected companies to discuss the transformation plan on 6 May 2024, initiating an information and consultation process before implementing an employment protection plan.
Concurrently, discussions with trade unions will commence to determine the specifics of the employment protection plan.
Casino is offering a voluntary redundancy scheme to minimise compulsory layoffs.
The retailer, now under the leadership of a consortium headed by Czech billionaire Daniel Kretinsky, has committed €1.2bn to store modernisation by 2028.
Furthermore, Casino is bolstering its purchasing partnership with Intermarché and extending it to Auchan, forming ‘powerful alliances’ with a nearly 30% market share in the French market.
This move is expected to enhance purchasing competitiveness despite the group’s smaller scale.
Casino Group CEO Philippe Palazzi said: “After the group’s financial restructuring and its refocusing on convenience brands, this transformation plan represents a key step towards setting Casino on a new growth trajectory.
“We are going to invest significantly in our sales outlets by 2028 to modernise and make them people-focused. We aim to achieve this transformation by offering responsible, personalised support to all our employees.”
