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Tag: casino group

  • Casino teams with L’Oréal to launch Paris wellbeing stores

    Casino teams with L’Oréal to launch Paris wellbeing stores

    French retailer Casino Group has teamed with cosmetics company L’Oreal France to launch Le drugstore Parisien, a new retail concept targeting city-dwellers in the heart of Paris.

    The two companies boldly claim the concept will “revolutionise the beauty and well-being shopping experience in the French capital”.

    Operated under Casino Group’s Franprix banner, Le Drugstore Parisien is positioned as “the urban store for beauty from within, practical treats and serendipity [the art of making unexpected discoveries].”

    The store will offer beauty and well-being products alongside over-the-counter pharmaceutical products, sewing kits, accessories and healthy snacks and treats.

    A number of L’Oreal brands will be available, including L’Oreal Paris, Maybelline, Garnier, NYX Professional Makeup, Essie and Sanoflore, as well as exclusive, expert brands so that shoppers can discover something new with every visit.

    Amenities designed specifically for urban consumers will also be on hand, such as free Wi-Fi, mobile-phone charging points, water fountains, shoe-shining machines, sinks and dressing tables, dry cleaning, parcel pick-up points, light therapy areas, key exchange, and one-hour delivery for certain products.

    Jean Paul Mochet, CEO of convenience banners at Casino Group, said the company has for several years been working to find ways of helping convenience stores connect better with customers.

    “In cities, we have been paying particular attention to the new ways space and time are used, which are radically changing consumer behaviour. The lines between work, culture and fun are being blurred, creating a new way of living. So city-dwellers need tailored products and services to make their lives easier. This goal was exactly what we had in mind when designing Le Drugstore Parisien – a unique, laid-back place that celebrates joy, pleasure and well-being amidst the hustle and bustle of Paris life.”

    The first two Le Drugstore Parisien sites opened last weekend at 66, Rue de la Chaussee d’Antin and 122, Rue du Bac in districts 9 and 6, respectively. They will be trade seven days a week, from 10am to midnight Monday to Saturday and from 11am to 8pm on Sundays. One day a month, they will open for 24 hours to offer Parisians exclusive events and well-being services.

  • Lotte pulls out of Big C Vietnam race

    Lotte pulls out of Big C Vietnam race

    South Korean retail heavyweight Lotte has reportedly withdrawn from the bidding battle for Big C Vietnam.

    Reuters, quoting unnamed sources familiar with the matter, said the company was not keen to bid aggressively for the supermarket network. Lotte already has its own network of hypermarkets in Vietnam and will no doubt have costed a bid for Big C based on the value of the market share and assets it would acquire versus the cost of continuing its own organic store network growth.

    France’s Groupe Casino is auctioning off the Vietnam business having earlier sold its stake in Big C Thailand to Thai import and export firm Berli Jucker for about US$6.2 billion.

    Lotte Group, which controls Lotte Shopping, declined to comment on the report.

    Big C opened its first Vietnam store in 1998 and has 30 stores in cities across the country.

    At the time it put the business on the market, Groupe Casino said it hoped to be paid about US$813 million, which would be spent paying down debt.

    However based on current bids for the business, sources are now estimating the sale could net closer to $1 billion.

    Thailand’s Central Group, which is has been approached by Berli Jucker to buy its minority stake in Big C Thailand and has a growing portfolio of retail businesses in Vietnam, is thought to remain in the hunt, along with Berli Jucker which through an affiliated company bought Metro Vietnam from Germany’s Metro AG last year and is building a convenience store network in the country under the banner B’Smart.

    Reuters reports at least 10 offers were initially received for the business, with the final round of tender due this week.

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  • Jucker votes for Big C buy

    Berli Jucker shareholders have voted in favour of the US$6.2 billion acquisition of a majority stake in Big C Thailand.

    The vote – virtually unanimous – followed news the listed company had secured funding for the purchase from a syndicate of 15 banks and means the deal is now all but complete. Settlement is expected late this month.

    But while the future of Big C Thailand now appears to be resolved, negotiations continue over the fate of Big C Vietnam, a smaller, less profitable business controlled by France-based Casino Group, which is shedding overseas assets to reduce its debt exposure.

    Casino has a 58.6 per cent controlling interest in Big C Thailand, which Berli Jucker will now acquire.

    In Vietnam, Thai tycoon Charoan Sirivadhanabhakdi, through another business, has recently purchased the Metro hypermarket business from Metro AG of Germany, to bolt on to Berli Jucker’s B’Smart convenience store network.

    Charoan was thus a favourite to acquire the Big C Vietnam operations to build even greater critical mass, and lodged a bid prior to the first round deadline with his soon to be Big C Thailand partner, Central Group.

    But sources within Asia’s business community are now confident Korea’s Lotte and Japan’s Aeon are frontrunners. Lotte runs the market leading Lotte Mart hypermarket business in Vietnam and would gain a significant foothold in the nation if it could secure Big C as well.

    Aeon, which is building shopping centres in Vietnam main cities, reportedly submitted an offer that valued the business at more than US$800 million according to sources quoted in Vietnam media.

    Lotte also submitted a bid prior to the first round deadline.

    Casino has declined comment on the Vietnam sale other than to say it was “progressing well” when it reacted to ratings agency Standard & Poor’s decision to cut its credit rating to junk status  on Monday

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  • Central Group sees flat spending in Thailand

    Central Group sees flat spending in Thailand

    As Thai retail conglomerate Central Group suffers a sluggish domestic economy, its owners the Chirathiwat family worry that premium customers are spending overseas rather than at home.

    “The upper class group is still spending money,” Chief Executive Tos Chirathiwat told reporters in Bangkok on Wednesday. “The problem is that they are spending outside of Thailand.”

    In 2015, roughly 7 million Thais travelled abroad, up 9% year on year. Tos said that these outbound travelers spent some 170 billion baht ($4.76 billion).

    “What’s worrying is that the figure is growing at 10% every year, while domestic consumption is expanding at only 2%,” he said. At this rate, the spending leak from Thailand will reach 300 billion baht in five years.

    The number of inbound tourists meanwhile hit a record 29.88 million in 2015, up 20% year on year from a low base in 2014 following political turmoil. But according to Tos spending has not kept pace, rising just 2% last year. He called for Thailand to promote domestic consumption and tourism.

    Central Group is Thailand’s largest retail company with subsidiaries including property development arm Central Pattana. Wearing another hat, Central is itself expanding overseas where operations now account for nearly 20% of group revenue. The company plans to more than double revenue in Europe to 2 billion euros ($2.17 billion) by 2020 — aided by custom from Asian tourists, including China and Thailand.

    Central has earmarked over 10 billion baht to renovate its retail acquisitions in Europe, including Berlin’s KaDeWe department store.

    Some 10.4 billion baht has been earmarked for renovating five department stores Central has acquired in the region. “We want the stores to be not only a shopping destination but also a tourism destination,” said Tos.

    Central began its shopping spree in Europe in 2011 buying Italy’s La Rinascente chain, which has a 150-year history. Revenue from Europe has been growing an average 40% each year since. This year, it is expected to jump 70% to 51 billion baht as three German department stores acquired in mid-2015, including KaDeWe in Berlin, start contributing.

    Tos said further mergers and acquisitions in Europe are being put off for now. “We have quite a large coverage in Europe now, and there’s a lot of work to do,” he said.

    A more immediate focus is Southeast Asia, particularly neighbors Cambodia, Laos, Myanmar, and Vietnam. In Vietnam, France’s Casino Group is selling off its Big C supermarket chain, and Central already has 25% of Big C in Thailand.

    “We are interested but we have not decided yet whether to join the bidding,” Tos said. “The acquisition will require a substantial amount of money which could be used to acquire something else.”

    TCC Group, the parent company of Thai Beverage, is also reported to be looking at Big C in Vietnam. It recently acquired Casino’s 58.56% stake in Thailand’s Big C for 3.1 billion euros.

    Bidding for Big C in Vietnam is expected to conclude next week. Tos said that if Central acquired the chain, its sales in Vietnam would double from $600 million at present. The company already has two Robins department stores there, and acquired Nguyen Kim, an electronics retail chain, last year.

    Tos said Central has no plans to reenter China after recently exiting. “China was a difficult market,” he said, noting the need for good government connections. “We learnt a lot.”

    Central’s group revenue in 2015 was over 283 billion baht, up 13.5% on 2014. It is targeting growth of 18.9% this year, with international sales contributing the lion’s share of the increase. Revenue from abroad will contribute 24% of the total, up from 18% in 2015.

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  • Casino confident could exceed asset sale target

    Casino confident could exceed asset sale target

    Shares in Big C finished up 9.7 percent as investors cheered an up to $3.5 billion deal by France’s Casino Group to sell its majority holding in the Thai hypermarket operator to TCC Group, owned by whiskey tycoon Charoen Sirivadhanabhakdi. The Vietnam unit sale had been planned earlier. Casino has said it plans to raise 4 billion euros ($4.5 billion) by selling assets this year, including its operations in Thailand and Vietnam. Ratings agency Standard & Poor’s in January put the French retailer’s debt on “negative watch” for a possible downgrade to junk status, citing concerns over weakness in Brazil and the retailer’s debt.

    In a significant step to reduce mounting debt levels, French retailer Group Casino has sold its controlling stake in one of Thailand’s largest supermarket chains.

    The sale is expected to be completed by 31 March 2016.

    A deal would add to the $50.6 billion of acquisitions in Southeast Asia over the past 12 months, data compiled by Bloomberg show.

    TCC, which owns the maker of Chang Beer among other assets, outbid Thailand’s biggest retailer Central Group to push into a retail sector that is expanding along with the number of middle class consumers.

    With over 700 outlets across Thailand, Big C’s market capitalisation nears €4.bn, while its annual revenue for 2015 totalled €3.4bn.

    With the news of Big C now under his belt as well, there seems to be no sign of Charoen slowing down in the coming year. Last month, Mr. Charoen’s TCC Group closed a EUR655 million acquisition of Metro Group’s cash & carry wholesale business in Vietnam. He became a household name in 2013 when he bought a controlling stake in Singapore-listed conglomerate Fraser & Neave that valued the firm at $11 billion.

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  • Thai conglomerate buys Big C for $3.4bn

    Thai conglomerate buys Big C for $3.4bn

    BANGKOK — Marking its first full-fledged step into the retail market, Thai conglomerate Thai Charoen Corporation (TCC) Group, owned by alcohol tycoon Charoen Sirivadhanabhakdi, has agreed to buy a majority stake in supermarket operator Big C Supercenter for 3.1 billion euros ($3.4 billion), excluding debts, from France’s Casino Group.

    Big C operates roughly 700 supermarkets, including 125 hypermarkets, throughout Thailand and is the second largest supermarket operator after Tesco Lotus, owned by the U.K.’s Tesco.

    According to a Casino Group release, Big C shares are valued at 252.88 baht ($7.1) per share, a 28% premium to the share price on Jan. 14 when Casino Group initially announced the disposal of its 58.56% stake, currently held through two local subsidiaries. The deal is to be closed by the end of March.

    TCC Group is the parent company of Thai Beverage, the flagship alcohol and beverages company known for its Chang beers.

    Billionaire Charoen has been expanding his reach within the Association of Southeast Asian Nations, including the 2013 takeover of Singapore beverage company Fraser and Neave, but until now his retail operations have been relatively small. In January, the group completed its acquisition of German cash-and-carry chain Metro’s Vietnamese unit.

    The Big C acquisition in Thailand, where consumers have a higher purchasing power than neighboring countries, will likely boost the conglomerate’s retail operations. Big C is expected to become a channel for the promotion of products of other companies within the group, such as Thai Beverage, F&N and Berli Jucker.

    The 28% premium may seem a somewhat high, but analysts say that this was one of the few chances left for Charoen to make a move into the Thai retail sector.

    After Carrefour’s Thai business was acquired by Big C in 2011 and Siam Makro, another cash-and-carry chain under a Dutch trading company was purchased by Charoen Pokphand Group in 2013, Big C and Tesco were the only foreign-owned retailers whose stake holdings could be put up for sale.

    “All the big family conglomerates are eager to acquire these foreign holdings,” Anuwat Srikajornratkul, analyst with Asia Plus Securities, said. “The retail market is already saturated and the best way to expand is to acquire an existing brand instead of building new brands,” he explained.

    Agribusiness conglomerate Charoen Pokphand Group, which runs Thailand’s Seven Eleven stores, is reportedly seeking to acquire Tesco Lotus.

    Casino Group, meanwhile, is expecting to reduce its debt by 3.3 billion euros through the sale. As part of its restructuring plan, it is also considering the disposal of its stake in Big C’s Vietnamese unit. Analysts speculate that TCC Group will likely compete for that acquisition too.

    Following the announcement, Big C shares shot up by 10% to 251 baht, a one-year-high during Monday’s trading hours. Berli Jucker shares soared nearly 20% also closing in to a one-year-high. Thai Beverage had no trading Monday as it is listed on the Singapore bourse, which was closed for the Lunar New Year holiday.

    According to Thai regulations, TCC Group will have to conduct a tender offer for all the remaining Big C shares after the deal is closed.

    Local media had reported that Thailand’s largest retailer Central Group was also interested in purchasing the Big C stake. Central initially founded Big C in Thailand and opened its first store in 1994. However, in the wake of the Asia Financial Crisis, it sold most of its stake to Casino Group in 1999.

    Central is also reportedly interested in bidding for Big C Vietnam.

    Central owners the Chirathiwat family currently hold a minority stake in Big C Thailand. Analysts say that the family could sell off all its remaining stake through TCC’s tender offer.

  • French retail giant AuchanSuper about to enter Vietnam

    French retail giant AuchanSuper about to enter Vietnam

    AuchanSuper, a major retail brand of France, is planning to enter Vietnam with the opening of the first store in 2016, according to a recent report on Ho Chi Minh City’s retailing landscape for this year of the Vietnamese arm of U.S.-based realty consultant firm CBRE.

    CBRE Vietnam said in the report last week that Ho Chi Minh City will be home to 15 AuchanSuper convenience stores, reinforcing the presence of foreign retailing brands in the southern economic hub.

    As of 2015, only one foreign retailer, which is French-owned Big C, had been on the list of the top five players in Vietnam alongside such local competitors as Saigon Co.op, Mobile World, Nguyen Kim Trading Joint Stock Company, and Saigon Jewelry Company Limited.

    Following the trend of other Asia-Pacific countries, operators of convenience stores will possibly gain a much larger market share, according to the report.

    Established since 1960, Auchan, the largest retail brand of France, currently owns nearly 900 hypermarkets, 370 supermarkets and more than 860 shopping centers worldwide.

    In Vietnam, Auchan has been present since 2014 through the Simply Mart supermarket chain, which is expected to grow to about 20 stores in Vietnam until 2020.

    Big C, on the other hand, may be sold to other investors after Casino Group, the owner of the retail chain, issued a memorandum last month stating that it may seek a new owner for its supermarket chain in Vietnam, as the company plans to strengthen its financial flexibility by selling assets in the country, as well as Thailand and Colombia.

    Despite a sustainable growth rate, earnings from the Vietnamese arm are miniscule in comparison with other foreign businesses of Big C.

    In 2016 Casino Group is expected to enact what it calls a ‘deleveraging plan’ of more than two billion euros (US$2.2 billion), mainly through real estate transactions and the disposal of non-core assets, according to the memo.

    The French group currently owns 10 retail brands across the globe, with a concentration in Asia. The Big C brand is used for the supermarket chain in Vietnam and Thailand.

    Regarding the wholesale business in Vietnam, the sole foreign player, German-owned Metro Group, last week announced it had officially been transferred to Thailand’s TCC Holding Co.

    TCC acquired all of Metro Cash & Carry Vietnam’s operations, including 19 wholesale stores and related real estate portfolios for an enterprise value of 655 million euros ($712.14 million), according to a Metro press release.

    Metro said the deal resulted in a cash inflow of around 400 million euros ($434.9 million), adding that payment had already been made.

     

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  • Thai Central says keen to bid for Casino’s units in Thailand, Vietnam

    Thai Central says keen to bid for Casino’s units in Thailand, Vietnam

    Thailand’s largest retail conglomerate Central Group is keen to bid for Casino Group’s Thai and Vietnam operations, a company executive said.

    Casino owns 58.6 percent of Big C Supercenter Pcl, which has a total a market value of $5.5 billion. Casino said last week it was keen to sell this stake after announcing it would sell its Vietnam unit in the first quarter.

    “We are interested in both Big C in Thailand and Vietnam,” Prin Chirathivat, deputy chief executive officer told Reuters.

    “If the prices are not too expensive, we will be keen to bid,” Prin said adding his family, the Chirathivats, has a combined 25 percent stake in Big C. Central has been actively looking to buy assets overseas as it wants to expand into Southeast Asia and Europe.

     

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  • France’s Casino puts Vietnam Big C chain on the block

    France’s Casino puts Vietnam Big C chain on the block

    Casino Group plans to unload the Big C hypermarket chain in Vietnam, as part of a restructuring plan to strengthen its financial flexibility in 2016.

    In a news release posted on its website on Tuesday, the French group said it aims to shave off more than 2 billion euros ($2.17 billion) of debt. In addition to selling the Vietnamese Big C business, the company said it is mulling “real estate transactions in Thailand.”

    Potential investors interested in buying the Big C operations include Thai conglomerates and Vietnamese property developer Vingroup, according to local sources. Bloomberg on Wednesday reported that the sale could raise 750 million euros, citing Bruno Monteyne, an analyst at Sanford C. Bernstein.

    Brisk sales

    Big C was one of the first international chains to gain a foothold in the Vietnamese market, where modern retailing is still in the early stages of development. The first of the French-style hypermarkets opened in the country back in 1998. As of December, the chain consists of 32 outlets and 10 C-Express convenience stores across Vietnam.

    It is one of the top five retailers in Vietnam, with total sales in the first half of 2015 reaching 312 million euros, up 26.4% on the year.

    Casino is the second European retail group to move to sell its Vietnamese chain of late. Last year, Germany’s Metro Group signed a deal to transfer its 19-store Metro Cash&Carry Vietnam unit to Thailand’s Berli Jucker for 655 million euros. The transaction was scheduled to be completed in the first half of 2015, but it has hit a legal snag related to Metro’s corporate income tax obligations in Vietnam.

    Meanwhile, Casino Group is seeking to generate 550 million euros through the real estate business in Thailand, and another 200 million euros in Colombia, according to Bloomberg.

    Casino’s Big C chain owns some 800,000 sq. meters of gross leasable area at shopping malls across central Thailand. In Colombia, its Exito unit controls more than 300,000 sq. meters of such space, excluding hypermarkets.

    Casino entered Thailand in 1999, when it acquired a stake in Big C, the country’s No. 2 mass food retailer. The group is now Big C’s majority shareholder. Big C runs hypermarkets, supermarkets, convenience stores and supercenters — which combine a hypermarket and a large mall — in the Thai market.

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