2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

1PRESENTATION OF THE CASINO GROUPBusiness and strategyIn November 2006, Casino signed a partnership with dunnhumby,creating a 50/50 joint venture company. dunnhumby is a recognisedexpert in data mining and managing customer data. Its mission issimple: “Understand the customer better than anyone else”.Through this partnership, the Group now has an effective marketingtool and can exploit data collected from its loyalty programme toanalyse each store’s consumer profile and build a product offeringtailored to each customer type at the individual store level.The main areas in which this approach is applied are pricing policyoptimisation, definition of assortment and communication. The initialinitiatives taken in 2007 began to produce results and were scaled upduring 2008. In terms of assortment, for example, the Casino Déliceslabel launched in 2008 has proved successful. Communication wasalso enhanced with the introduction of personalised statements foreach customer.In 2009, the Group extended the areas covered by the “dunnhumbytool” by implementing a more effective promotional policy andrationalising product ranges to eliminate low turnover products withoutimpacting revenue.c. Presentation of internationalbusiness and strategyInternational business is a powerful growth vector for the Group,which operates in eight countries with a total of 2,202 stores including294 hypermarkets. International revenue totalled €11,122 million in2010, representing 38% of the Group total compared with 34% in2009. The trading margin was 4.8% in 2010.The portfolio of international assets has been thoroughly remodelled.Casino now has a geographic platform comprised of countrieswith high growth potential, large, young populations, fast-growingeconomies and a largely fragmented retail structure.Casino now focuses on two core regions: South America and South-East Asia, which accounted for more than 90% of the Group’s totalinternational revenue in 2010. Its subsidiaries hold leadership positionsthanks to their long-established store banners and close-to-thecustomerrelations. Reflecting this momentum, the two regions bothreported a buoyant performance throughout the year, with organicgrowth of 13% in South America and 7.4% in Asia.Casino also operates in the Indian Ocean region, where it has a leadingposition through Vindémia.South AmericaCasino is the number-one food retailer in South America, with leadingpositions in Brazil, Colombia, Argentina and Uruguay. South Americaaccounted for 74% of international revenue and 70% of internationaltrading profit in 2010. Brazil and Colombia are the biggest contributorsto South American revenue, generating 56% and 35% respectively.South America posted total 2010 revenue of €8,245 million with atrading margin of 4.5%.• BrazilCasino has operated in Brazil since 1999, through its subsidiaryGrupo Pão de Açucar (formerly CBD). Grupo Pão de Açucar (GPA)is a historic player in the Brazilian retail market, and over the past fewyears has adapted its positioning in food retailing to meet the needsof consumers whose standard of living has improved dramatically.Although hypermarkets and supermarkets still dominate, GPA now hasa multi-format, multi-banner portfolio that caters to a clientele drawnfrom all socio-economic backgrounds. It has also been developinginnovative private label goods, which are much appreciated byconsumers, including Qualità, an umbrella brand for food products,and Taeq, a health and well-being range.In 2009, GPA acquired Globex and its Ponto Frio banner, Brazil’ssecond largest retailer of consumer electronics and householdappliances. In 2010, Globex signed an agreement with Casas Bahia,Brazil’s leading non-food retailer, making GPA the unrivalled leaderin consumer electronics and household appliances with a marketshare of more than 20%. A new company will be launched to houseGPA and Casas Bahia’s online retailing business, thereby creatingthe second largest Brazilian internet retailer.With these major strategic initiatives, GPA has consolidated itsposition as Brazil’s leading retailer both in food and consumer durablesegments.At the end of 2010, GPA operated a total of 1,647 stores, with strongmarket positions in Brazil’s two most economically vibrant states, SãoPaulo and Rio de Janeiro.GPA posted revenue of €13,751 million in 2010.GPA has been proportionately consolidated since 1 July 2005.Casino owned a 33.7% interest in GPA at end-2010. Ponto Frio hasbeen consolidated by GPA since 1 July 2009 and Casas Bahia since1 November 2010.GPA posted consolidated revenue of €4,635 million in 2010.GPA’s shares have been listed on the São Paulo Stock Exchangesince 1995 and the New York Stock Exchange since 1997.HypermarketsExtra: 110 storesExtra hypermarkets offer a vast range of food products as well aspersonal and household equipment, aiming to meet the demands ofas many consumers as possible at the best prices.SupermarketsPão de Açúcar: 149 storesPão de Açúcar convenience supermarkets offer a broad array ofhigh quality produce. Always at the leading edge of technology, thebanner also offers a range of services to meet the needs of a relativelyaffluent clientele.Sendas: 17 storesSendas stores are convenience-format supermarkets operatingexclusively in the Rio de Janeiro area and offering a broad range ofpremium products with high quality service.Extra: 101 storesExtra Perto stores are large supermarkets designed on a human scale.They provide an extensive food offering as well as a broad non-foodrange in modern, pleasant surroundings.CompreBem: 113 storesCompreBem supermarkets are aimed more at lower-incomeconsumers. They provide a large range of primarily private-label foodproducts, as well as a selection of non-food products.ConvenienceExtra Facíl: 68 storesExtra Facíl superettes are local convenience stores with a simple,pleasant look. They offer all basic products and services, with goodvalue for money.10 Casino Group | Registration Document 2010