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The Casino chain of stores, which employs more than 500,000 people in France, is facing heavy debts. The brand will have to sell points of sale to its competitor Intermarché.
Is this the beginning of the end for Casino? With sales down 2.3% in the last quarter, the group can no longer meet its debts, amounting to 6.4 billion euros at the end of 2022. In times of inflation, customers are numerous to turn away from the group. On May 26, the distribution brand announced that it wanted to sell 180 points of sale to Intermarché, representing 1.15 billion in turnover. Casino is also trying to renegotiate its debt.
A problem of strategy
For Yves Puget, editorial director of LSA magazine, the brand “First of all has a financial problem. It is a group that has been formed for more than 20 years by debt to have external growth, (…) which lacked stability in its commercial direction, with prices too highs, and quite simply a lack of long-term visibility”. The first disposals should take place at the end of 2023. Casino employs more than 500,000 people in France, and 200,000 worldwide.
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