Groupe Casino
Annual Report 2016

Plain-text annual report

Annual and Corporate Social Responsibility Performance Report20162016 ANNUAL REPORT|Contents0810182022762016Significant events of the year Key figuresA broad international footprintThe Executive Committee0204Group profile and history Interview with Jean-Charles NaouriCSR performance and progress| 2016 ANNUAL REPORT24263032A pioneering model for the futureA multi-format, multi-banner strategy E-commerce: tailored digital strategies A product offering to meetincreasingly higher standardsA property strategy in support of retail CSR as a performance driver36384244546474Dynamic, innovative bannersFranceColombia Brazil Retail partnerships788390879498Committed employer Responsible retailer Trusted partnerEnvironmentally committed groupLocal corporate citizen Key 2016 CSR performance indicators108Financial performance and governanceThe Board of DirectorsShare performance and ownershipFinancial highlights Store network1101181161241898Geoffroy Guichard sets up Société des Magasinsdu Casino et Établissements Économiquesd'Alimentation1997Acquisition of Franprix and Leader Price2012Acquisition of control of GPAin Brazil and Monoprix in France2016Operations refocused on two core regions: France and Latin America1999Strategic alliances are forgedwith long-standing retailers in Braziland Colombia2015Consolidation of operations in Latin America under the Colombian subsidiary Éxito1992Merger with Rallye, a French retailerowned by Jean-Charles Naouri1906The first production plants to supplyCasino-brand products are opened1948The first self-service store is inaugurated2016 ANNUAL REPORT|3well-established player in the French retailindustry, the Casino Group is also a leader in the global food retail market, with 12,969 stores worldwide – in France, Latin Americaand in the Indian Ocean region. It has built up a portfolio of strong, dynamic andcomplementary banners, thanks to its workforce ofnearly 228,000 people driven by a passion for retailand customer service. In all of its host countries, Casino focuses itsdevelopment on the formats with the highestpotential and ability to adapt in order to meetcustomer needs, both today and in the future. Itscontinuous innovation strategy, its ability to adapt tolocal realities and its proactive engagement in the community make Casino a unique player in theretail industry that can consistently live up to itsmotto of "nourishing a world of diversity".A2| 2016 ANNUAL REPORT2000Stake in Monoprix increased to 50% and acquisition of Cdiscountstore space has since increased by more than 3%. At Leader Price, where net sales are on the rise, the work undertaken to improve opera tional processes is paying off. Thecustomer experience has been enhanced, theoffering expanded and costs kept under control.Monoprix, which continues to roll out its unique,highly efficient business model, has enjoyedgrowth in net sales as well as rapid expansion.Sixty stores were opened in 2016, includingtwenty Naturalia stores featuring an original, all-organic concept. Casino Supermarketsregained momentum through a quality-orientedbusiness model emphasising premium food andthe development of food services.Is convenience still the Group’s keystrength in France?We’ve adapted to market changes by definingdifferentiated urban, semi-urban and ruralsegments within the convenience category.Franprix is spearheading the trend in the urbansegment with its Mandarine concept, whichcontinuously innovates by designing spacesand Argentina generated organic growth of 10.8%*. In Brazil, GPA’s sales rose 11.7%*.Business grew stronger in all geographies.What strategy has driven that performance?Our results show that we have made the rightstrategic choices. We have two clearly definedpriorities. Our primary goal is to adapt formats tonew consumer trends in real time and developwinning formats in all countries. This meansperpetually innovating to adjust our productoffer and store concepts while staying in stepwith customer expectations.Our second priority is operational excellence.This has been a constant focus for a number of years. In every country, we are continuouslyimproving the way we work in stores byimplementing best practices, reducing operatingcosts and rationalising investments.How has business been for the French banners?In France, we’ve built a profitable, efficientbusiness model in which each banner plays arole. Géant has performed well, with net sales up 1.6%* and market share growing slightly. This reflects a series of bold sales initiativesemphasising the fresh produce section and food services. In parallel, we’ve cut back non-food retail space,especially for product categories affected by e-commerce. Net sales per square metre of The Casino Group has beenchanging fast in recent years. How would you describe its profile today? The Group is both a historical and a leadingretailer in every country where it operates,leveraging a diversified network of powerful,agile banners that are closely aligned with theircustomers and able to change fast alongsidethem. Our advantage is that we use this modelto seize the best available opportunities, whileat the same time ensuring healthy, long-termgrowth.All the measures we took in 2016 weredesigned to enhance our operational profile. TheGroup streamlined its structure in Latin Americaby refocusing on food retail. The Brazilian e-commerce businesses were sold to Via Varejo,the subsidiary specialised in non-food retail, and the decision was then made to divest that company. The Group also sold its Asianbusinesses, thereby cutting its debt in half andsolidifying its financial position considerably.What were the highlights of the year?The main highlight in 2016 was the Group’sturnaround in France, which was the culminationof several years of hard work. Performanceimproved, in line with our roadmap. Growth wasalso maintained in Latin America, despite theeconomic downturn in Colombia and Brazil.Grupo Éxito’s businesses in Colombia, Uruguay“Our primary goal is to adapt formats to new consumer trends in real time.”“All the measures we took in 2016 were designed to enhance our operational profile.” InterviewwithJean-Charles Naouri,Chairman and Chief Executive Officer of Casino4| 2016 ANNUAL REPORT2016 ANNUAL REPORT|5* Organic growth excluding fuel and calendar effects.How do you reconcile yourperformance goals with theGroup’s social and environmentalresponsibility? They are closely inter-related. Our CSRcommitments, which are upheld and applied bythe men and women who work for the Group,support our ever-evolving strategy. Throughtheir involvement and professionalism, ourteams play a key role in achieving operationalexcellence. By working with local producers,reducing our carbon footprint, promotingdiversity and professional development, andtaking a more caring approach to managingpeople and dealing with customers, we arecreating a sustainable business growth model.numbers: business volume of nearly €3 billion,net sales of €1.8 billion and 8 million activecustomers, the majority of whom now usemobile services. The indicators are also positive,with a significant rise in the number of sales andorders. The marketplace’s contribution continuesto grow, coming in at 31% of the total in 2016.Customer loyalty has improved, with a rapidlyincreasing number of members signing up toCdiscount's unlimited delivery service.What are the challenges for 2017? In every region, our expansion drive needs totarget the most successful formats. We areconfident that cash & carry will develop in LatinAmerica as the perfect response to changingconsumer habits in that market. We also want toreinforce the Group’s leadership in premiumformats, with Monoprix and now Franprix inFrance, Pão de Açúcar in Brazil and Carulla inColombia. Convenience is another priority. InLatin America, we have to adapt to marketchanges by clearly differentiating between theofferings available in the convenience segments.In 2017, we will continue adjusting our store mixand accelerate conversions to the mostprofitable formats. Colombia, in partnership with a financial investor.In Uruguay, sales growth is underpinned by thecountry’s stability and high purchasing power. InArgentina, we’ve gained market share andcontinue to develop property projects, giving usresilience in a highly inflationary environment.With the planned sale of Via Varejoin Brazil, what is GPA’s newbusiness model? GPA is refocusing on food banners, building its business around two divisions, Multi Varejo and Assaí. We’re very happy with the way sales are trending at Extra hypermarkets. Therevitalisation plan has proved successful,delivering gains in market share and store trafficthat have helped lay the groundwork forimproving profitability in 2017. The premiumbanner Pão de Açúcar has delivered an excellentperformance and continues to develop itsconvenience format.The cash & carry banner Assaí has enjoyedorganic growth of nearly 40% and is rapidlyexpanding. Thirteen new stores have beenopened successfully, of which two convertedExtra hypermarkets. Assaí accounted for 36% ofGPA’s net sales in 2016, up from 30% in 2015,thus gradually improving our business mix in Brazil.How has the Group performed in e-commerce? A perfect complement to our brick-and-mortarbanners, the e-commerce business is nowfocused on Cdiscount in France. The website has reported outstanding growth and strongwhere customers can access a variety ofservices. Nearly two-thirds of stores in theFranprix network had been renovated by the endof 2016, and all remaining stores will beconverted in 2017. Other convenience banners,such as Petit Casino, are introducing newservices and upgrading their offering andconcepts. These banners cover a network ofmore than 6,000 outlets, with nearly four out of five stores operated under franchise orpartnership agreements.How has the economic downturnimpacted business in LatinAmerica?Our multi-format model enables us to continueexpanding our businesses while developingsynergies between countries, especially inapparel, property and financial services. InColombia, we’ve maintained the leadership ofour banners in every segment. Inspired by thesuccess of Assaí in Brazil, Grupo Éxito haslaunched a promising cash & carry concept,Surtimayorista. We've also continued to developour property business with the creation of VivaMalls, the leading shopping centre operator in6| 2016 ANNUAL REPORT2016 ANNUAL REPORT|7■Interview with Jean-Charles Naouri“Through their involvement and professionalism, our teams play a key role in achieving operational excellence.”“Assaí accounted for 36% of GPA’s net sales, thus graduallyimproving our business mix in Brazil.”201610| 2016 ANNUAL REPORTSignificant events of the year Banners:momentum gathering across all formats2016 ANNUAL REPORT|11Brazil: Assaí inaugurates its 100thstoreOn 20 October in Aracajú, capital of the state of Sergipe, Assaí inaugurated its 100thstore, reachingan important milestone in the development of the Brazilian cash & carry chain. Assaí had an exceptional 2016, increasing sales by almost 40% and opening 13 stores during theyear, including three in states where it previously had no presence. The banner strengthened itsposition as number 2 in the market, with a network of 107 sales outlets. Assaí is now present in16 Brazilian states ■SuperMaki reinventstraditional retailing in MadagascarUnder the SuperMaki banner, Jumbo Score is developinga new way of working with informal retail outlets in theMadagascan capital. Around 20 convenience storesadopted the banner in 2016, thus gaining access througha supply contract to the Group's quality and food safetystandards ■Casino Supermarkets on a quest toconquer the premium food marketPetit Libertad, premium convenience in ArgentinaAfter opening 15 Devoto Express stores in Uruguay in 2015, the Group isnow introducing a new premium convenience format in Argentina, withthe first Petit Libertad store opening in Córdoba in October. The 140 sq.mstore stocks over 3,000 items, from everyday essentials to highlydifferentiated products including a line of Italian pasta, Swiss chocolatesand a selection of beers from around the world. More than a dozen stores,generally franchises, are set to open in 2017■Grupo Éxito launches its cash &carry banner: SurtimayoristaGrupo Éxito's new cash & carry banner opened in Bogotá in May.Operating under the name Surtimayorista, the concept buildson the key principles of the Brazilian retailer Assaí: an effectivewholesale business model aimed at both restaurant operatorsand families seeking the lowest possible prices. Its aim is toopen points of sale in all large towns and cities in Colombia ■Leader Price unveils its new concept The Casino Group's value banner is reinventing itself and goingback to basics to provide quality products at aggressively lowprices. This commitment is symbolised by a new logo and rolledout as part of a brand new concept that refreshes the shoppingexperience, with a focus on revitalising the customer journey andmaking stores more enjoyable. The transformation has achievedconsiderable success. The first Leader Price store introduced thenew concept in May (in the Paris suburb of Ballainvilliers) and hasseen a 30% increase in sales ■The French banner CasinoSupermarkets is placing apriority on fresh produce,focusing on a newquality-orientedpositioning thatshowcases food services,introduced this year in itsstores in Paris, Lyon andMarseille. Apart fromworking to improve boththe product offering andconcept, the banner ismaking a commitment tosharing its expertise anddeveloping the skills of itspeople in customerservice roles■12| 2016 ANNUAL REPORT2016 ANNUAL REPORT|13Significant events of the year The pioneering spirit – from product offerings to payment solutionsAn assortment of 18 fully-organic baby food products waslaunched in Leader Price storesin October. It was developed incollaboration with a group ofspecialists in paediatricnutrition to meet the specificdietary needs and tastes ofbabies aged 4 to 12 monthsold. Textures and ingredientshave been adapted to each agegroup ■With prices reduced by 40% and faster turnover in designs, Éxito has implemented anew strategy to further develop its offering of 11 private-label apparel brands andhas met with unprecedented success. In 2016, volumes increased by 82% and sales by 52% ■Private-label apparel: Éxito's gamble pays off Leader Pricelaunches anorganic baby foodofferingGéant revamps its freshproduce offering The new fresh produce offering has taken centre stage inGéant supermarkets, with an area specially designed toresemble a marketplace selling high-quality, locally-sourcedproduce with a shortened supply chain for greaterfreshness. Similarly, the pages of the “Mon marché Géant”catalogue, sent out every week to more than 5 millioncustomers, are full of recipes and tips ■Casino extends its range of agro-ecology productsHaving introduced frozen vegetables free from pesticide residue and chickenraised without antibiotics, Casino has widened its agro-ecology product offeringby selling pork raised from birth without antibiotics. This commitment from theGroup is intended to develop innovative farming practices that help theenvironment as well as producers and consumers ■Monoprix always in fashionThe 150 textile designers and product managers at Monoprix keepmaking resolute choices and are introducing two new textilecollections: sportswear by Monorprix Fit and skiwear by Monoprix Ski for the whole family to enjoy ■Franprix leads the waywith a portable paymentsystem Franprix has revolutionised the checkout experienceby introducing a new portable payment solution.Checkout staff walk among customers, offeringthem all the services traditionally available at thecheckout using a portable "ring" scanner, a credit cardterminal, a tablet – all connected to the secure in-store WiFi. Introduced in about 100 stores in2016, this solution takes the banner one step furtheron the road to transformation and innovation, by reinforcing closeness with the customer ■14| 2016 ANNUAL REPORT2016 ANNUAL REPORT|15Significant events of the year Omni-channel retailingMeals delivered by Franprix in under an hourCollaborating with Allo Resto, Glovo, les Nouveaux Fromagers andResto In, the ultra-urban banner Franprix is setting up anincreasing number of partnerships with start-ups to deliverbreakfast, cheese platters, nibbles or meals to the homes andoffices of people in the French capital. Orders made using AlloResto or Rest In's website or mobile app are delivered within45 minutes ■Viva Vinhos, online wine retailing by Pão de Açúcar Pão de Açúcar has entered the online wine market with the Viva Vinhos offeringavailable on its website. The service gives customers access to a selection ofwines from the best winemaking regions, chosen by the retailer's in-housespecialists. Customers chose the type of subscription and the number of bottlesof wine they want to order, and each month, the wine is delivered to their homesfree of charge. Launched last spring in São Paulo, the initiative has been rolled outto other major towns and cities in Brazil ■Cdiscount launches a mobile telephonepackage for €2 a month France's leading e-commerce website now offers the most competitivemobile telephone package on the market, with a basic contract unlike anyother in France: 200 minutes + 200 SMS/MMS + 200 MB of 4G for €2 per month ■Mobile sites boost traffic for exito.com and carulla.comThe e-commerce websites for Grupo Éxito went from strength tostrength in 2016, with the launch of mobile versions forexito.com and carulla.com. These mobile sites already account for50% of traffic, and launching the marketplace has also drivenfaster growth. With sales up 25% and 45 million more visitsduring the year, Grupo Éxito is cementing its position as leaderin the Colombian online market ■Cdiscount launches same-day delivery To reduce delivery times, the main competitive challenge in e-commerce,Cdiscount has set up a new distribution mechanism. At the Saint-Mardwarehouse to the northeast of Paris, the cut-off time for delivery of itemsweighing more than 30kg has been pushed back to 2pm for same-day delivery inParis and Lyon. For items weighing less than 30kg, the introduction of staggeredshift teams in the Cestas warehouse near Bordeaux has also made it possible topush back the cut off to 2pm, Saturday included. Parcels are dispatched by5.30pm for next-day delivery throughout France, including on Sundays in Paris ■Monoprix invents its very own monojis Building on its popularity on social media, with 1 millionFacebook fans to its name, Monoprix has launched its owncollection of emojis, known as monojis, available fordownload on the App Store. Inspired by the off-beat humourof Monoprix packaging and designed by the New Yorkartist Jeremyville, monojis are short, ready-to-use messagesthat are directly available using the iPhone's iMessagingkeyboard ■16| 2016 ANNUAL REPORT2016 ANNUAL REPORT|17Significant events of the year CSR commitments that influence all operations*POUR DE BONMANGEONS MIEUXŒUFS MONOPRIX 100% PLEIN AIREasydis rolls out a fleetof 400 natural gas trucksThe Casino Group's distribution subsidiary,Easydis, has begun rolling out a fleet ofvehicles running on natural gas to limit itsimpact on the environment when deliveringto stores. The goal is to own 400 cleantrucks by 2020, the largest fleet of naturalgas vehicles in France ■A new milestone in the battle for gender equality Drafted based on findings from a field surveyof Group employees, a guide entitled "FightingEveryday Sexism” was circulated to employeesto help break down stereotypes thatdiscriminate against women at work. In addition, Casino signed up to the Women’sEmpowerment Principles developed by UN Women, thereby strengthening the Group'scommitment to promoting gender equality in the workplace ■Monoprix stops selling eggs from caged hens As the first major retailer to offer, from 2013, only free-range eggs under itsprivate label, Monoprix has taken respect for animal welfare one step further bypermanently removing all eggs from caged hens (category 3) from sale acrossall its brands. Franprix, Leader Price and Casino stores have each since made thecommitment to stop selling eggs from caged hens in their stores by 2020■Colombia opens its largest photovoltaic solar power plant The largest photovoltaic solar power plant in Colombia and new jewelin the crown of Viva Malls, Viva Baranquilla was opened in November.The plant produces 24% of the store’s energy consumption and reducesCO2emissions by 302 tonnes per year ■First set of graduates from the"Caring Management Practices"masters' programmeThe Université Jean Monnet in Saint-Étienne has awarded the firstTrade and Retail “Caring Management Practices” masters’ degreesto 12 managers from the Group. This first set of graduates fromvarious French subsidiaries can now extend to their teams theirknowledge about what drives employees motivation in caringmanagement. The second group of students is made up of 11 newmanagers■18| 2016 ANNUAL REPORT2016 ANNUAL REPORT|19€36billionin consolidated net sales €1.034billionin trading profit€3.4€6.1billionconsolidated net debt+5.7%organic growth1in consolidated sales1 Excluding fuel and calendar effects.2 Number of employees on payroll at 31 December 2016, including those under permanent/fixed-term contracts and full-time/part-time contracts – consolidated businesses only.3 Including the Indian Ocean region. 4 Excluding Via Varejo.at 31 December 2016at 31 December 2015€341millionunderlying net profit, Group shareRetailingE-commerceNo.1inBrazilNo.1inColombiaCdiscount is No.2in FranceExito.com is No.2 inColombiaKey figuresPercentage of employees under 30Percentage of female employees53%39%Percentage of female managersPercentage of employees on permanent contracts93%37%227,842 employees212,969stores3,114stores in Latin America420169,855stores in France320| 2016 ANNUAL REPORT2016 ANNUAL REPORT|21ColombiaA broad internationalfootprintValue bannersConvenience bannersConvenience bannerse-commerceValue bannersPremium bannerse-commercePremium bannerConvenience bannerBrazilValue bannersIndian OceanConvenience bannerse-commerceValue bannersConvenience bannerse-commercePremium bannerFranceUruguayValue bannersPremium bannersArgentinaValue bannerConvenience bannersTina SchulerChief Executive Officerof Leader Price and Casino Supermarkets22| 2016 ANNUAL REPORT2016 ANNUAL REPORT|23The Executive CommitteeJean-Charles NaouriChairman and Chief Executive OfficerHervé DaudinMerchandise Director and Chairman of EMC DistributionYves DesjacquesCorporate HumanResources DirectorCarlos MarioGiraldo MorenoChairman and Chief Executive Officer of Grupo Éxito Antoine Giscard d’Estaing Chief Financial Officer Ronaldo IabrudiChief Executive Officer of GPAJean-Paul MochetChief Executive Officer of Franprix and the Convenience BannersJulien LagubeauChief Operating Officer and Executive CommitteeSecretaryRégis SchultzChairman of MonoprixArnaud StrasserCorporate Development and Holdings DirectorGérard WalterChief Executive Officer of Géant CasinoLed by the Chairman and Chief Executive Officer, theExecutive Committee is responsible for managing theGroup's operations as it implements the strategic visiondefined by the Board of Directors. It shapes strategy, coordinates and shares initiatives andtracks cross-functional projects to ensure the alignmentof action plans deployed by the subsidiaries and operating divisions and, in this capacity, sets prioritieswhen necessary. It also monitors financial results andratios and determines the action plans to be undertaken.The Committee meets once a month.A pioneeringmodel for the future26| 2016 ANNUAL REPORT2016 ANNUAL REPORT|27A multi-format, multi-bannerstrategy Powerful, complementary bannersThe Casino Group is today firmly established in twobalanced and structured geographic regions: France, theGroup’s historical homeland, and Latin America, whereoperations are grouped around the Colombian subsidiaryGrupo Éxito. In all of its host countries, the Group has developed a diversified portfolio of powerful,complementary banners representing some 13,000multi-format stores, be they long-standing players rootedin consumers’ everyday lives, attractive and agile gemscapable of spotting trends from the outset or innovativeconcepts at the leading edge of new consumerbehaviour. More than just the sum of its outlets, the network drawsits strength from its extremely refined segmentation,which makes it possible to meet ever-changing demand.Value banners include the hypermarkets, the discountoutlets and the highly dynamic Assaí cash & carry chainin Brazil. Premium banners are represented by Pão deAçúcar in Brazil, Carulla in Colombia and Monoprix andFranprix in France. And convenience banners, which areadapted to both city centres and rural areas, are welldeveloped in France, with Casino Shop, Vival, Spar, LeaderPrice Express and Sherpa, and being deployed rapidly inLatin America, notably with Minuto Pão de Açúcar inBrazil, Carulla Express in Colombia and Devoto Express inUruguay.Four priority formatsThanks to the strength of its network, the Casino Groupis ideally positioned to accompany the main changestransforming the retail industry, such as the gradual shiftto e-commerce in the non-food segment, the trend ofurbanisation and ageing populations, and the polarisationof consumer habits around premium and discountThe Casino Group has developed a diversified portfolio of powerful, complementarybanners in its two host regions. Thanks to this organisation, it is ideally equipped to keeppace with the main trends shaping the retail industry and to effectively roll out itsstrategy, which focuses on the most successful formats.A pioneering model for the futureeffectively to demand, as evidenced in the success ofMinuto Pão de Açúcar premium convenience stores andColombia’s “aliados” local discount stores. Also helping tofuel this transformation were the clear move upmarketby Franprix, a champion in innovative services, and thefocus on premium food products by Casino Supermarkets.Lastly, the announced sale of non-food e-commercebanners. This vision has led the Group to focus on fourup-and-coming formats capable of sustainably deliveringgrowth: premium, value, convenience and e-commerce.The Group’s multi-format dimension provides numerousopportunities to spur their development. For example, theGroup is stepping up the expansion of its most successfulbanners, transforming outdated formats, makingadjustments to transfer surface area from one format toanother and selling businesses that are no longer in linewith its model. Shifting the boundariesThis movement accelerated in 2016. It was the drivingforce behind the faster-paced expansion of Assaí, whichadded 13 stores in 2016 and plans to open more than 20 outlets in 2017, notably thanks to the programme toconvert Extra hypermarkets. In France, Géant continuedits transformation and refocused on a quality foodoffering and attractive fashion, beauty and housewaresranges, leaving the development of non-food sales to e-commerce banner Cdiscount. Part of the Group’s DNA,the convenience format stepped up its segmentationdrive to create highly specific banners that cater moreof consolidated net sales is now generated by the most successful formats50%Fresh Market, an innovativeconcept inaugurated in 2016The Uruguayan banner offers a range of upmarketfresh produce and groceries.“The conversion of Extra stores is asource of growth for Assaí.” The cash & carry concept isperfectly aligned with customerneeds in Latin America. With the support of Assaí’s teams,Grupo Éxitoopened its firstSurtimayoristastore inBogotá in 2016. After a periodspent adjusting to the localculture, thisColombian take on cash & carry isslated to spread quickly to thecountry’s other major cities.What are the main characteristics of the Assaí store concept?Our concept is ideally suited to our original clienteleof small merchants. We offer a wholesale range of7,000 items spanning groceries, fresh produce,beverages and cleaning and personal hygieneproducts at market-beating low prices. We have developed an industrial-scale, easilyreproducible model containing all the ingredients forexcellent profitability. In concrete terms, we adjustthe structure of the stores, expanding their surfacearea and raising the roof to increase storage spaceand facilitate deliveries. This model for “autonomous”stores – meaning they do not depend on adistribution centre – was a decisive factor in thebanner’s growth. Today, Assaí continues to gainmarket share.How did a banner dedicated to smallmerchants succeed in attracting a clientele of regular consumers?Our stores have been made more appealing, withbrighter, more comfortable selling areas and anupdated and diversified product assortment that ismore in line with what families expect. The economicInterviewBelmiro Gomes, Chief Executive Officer, Assaí28| 2016 ANNUAL REPORT2016 ANNUAL REPORT|29operations and banners in Brazil fits neatly into thisstrategy. In all areas during the year, the Casino Groupshifted the boundaries and showed proof of agility. As aresult, the Group has streamlined its business, reaffirmedits sound financial position and strengthened itsoperating profile, with half of its sales now made throughsustainably successful formats.Synergies to boost excellenceThe banners are structured and managed coherently togenerate strong synergies. For this reason, the Group’ssize and positioning have become major assets duringpurchasing rounds with large international suppliers.These advantages have been further enhanced by thestrategy of forming alliances with partners such asIntermarché for food and office purchases in France, Diafor international food operations and Conforama andSteinhoff for non-food products in France and forinternational operations. In terms of operational excellence, projects focus onsharing best practices in store management andoperations and on skills transfer initiatives, as in theapparel and food services segments. They also includemeasures to contain costs, notably with a programme toimprove stores’ energy performance, and investmentmanagement.Lastly, cooperation is intensifying around private labels,which have a vast market on both sides of the Atlantic.While the Casino and Monoprix food brands bring a touchof French tradition to South American stores, Grupo Éxitois continuing to deploy its Finlandek housewares brandand strengthen its Bronzini and Arkitect apparel brands,which are designed in Colombia and now widely availablein hypermarkets in Brazil, Argentina and France ■A pioneering model for the futureBy facilitating synergies, the combination ofthe Group’s Latin American operations withina coherent unit led by Grupo Éxito has resultedin the creation of two new discount banners.In Colombia, a first cash & carry store namedSurtimayorista has opened its doors based onthe Assaí model, while in Brazil the “aliados”concept has been rolled out among smallindependent merchants under the CompreBem banner.Cross-fertilisationsituation has also helped to accelerate the changein clientele. To maintain their purchasing power,Brazilians have had to embrace the discountsegment, with some consumers migrating fromtraditional retailers to cash & carry banners. Assaí is capturing this new market. This explains thesuccess of the Extra hypermarket conversionproject, which is a source of growth that issignificantly outperforming forecasts.What is the outlook for the banner?Our first priority is to keep up our fast-pacedexpansion, particularly into states where we are notyet established. After inaugurating 13 stores in 2016,including three in new Brazilian states for the banner,we plan to open six to eight new stores and above all convert 15 to 20 Extra hypermarkets in 2017.Assaí customersConsumersRestaurant operatorsand small merchants60%40%THROUGHOUT THE GROUP30| 2016 ANNUAL REPORT2016 ANNUAL REPORT|31E-commerce: tailored digital strategiesCdiscount: playing the complementarity cardIn a mature market such as France, where competition innon-food retail has benefited e-commerce, pure playerCdiscount has a rightful place in the Casino Group’sstrategy. The click & mortar approach is creating a greatmany synergies. For example, while refocusing theiroffering on food and “pleasure” purchases such asfashion, beauty and housewares, Géant hypermarkets aredeveloping corners dedicated to the website’s range ofhome appliances and electronics. Cdiscount is alsobenefiting from the Group’s purchasing power, which was enhanced in 2016 by a partnership with Conforama (see box).Cdiscount has reported remarkable growth, drawing onits granular knowledge of customer behaviour toenhance the shopping experience and update its range.As France’s second-most popular e-commerce website,Cdiscount attracted 842 million visits in 2016 (up 11%year-on-year), of which 53% from mobile devices, aproportion that continues to rise. The number of ordershas increased by 23% to more than 25 million, with 49 million units sold to date. Thanks to this performance,Cdiscount generated business volume of nearly €3 billion,up 14% on the previous period.Growth driversCdiscount’s growth strategy is based on developing direct sales in tandem with the marketplace, which nowrepresents more than 20 million products for sale. The e-commerce banner is extending its range of merchantservices to include delegated logistics, whereby thebanner stocks and sends the merchants’ products ontheir behalf to improve the level of customer service.Going from strength to strength, the marketplacecaptured 31.4% of business volume in 2016 versus28.1% in 2015.Another significant growth driver, customer loyaltyinitiatives are based primarily on the “Cdiscount à volonté”premium membership programme, which enablesClose-to-the-customer digital offeringsHarnessing their dynamism, innovation capacity andstrong identities, the Group’s banners implement digitalstrategies that are closely aligned with the specificitiesof their markets. Grupo Éxito websites, for example,which account for nearly half of all e-commerce inColombia, benefit fully from the support of brick & mortarstores, where digital terminals give supermarket shoppersaccess to an expanded non-food range. In Brazil, Pão deAçúcar offers premium services online such as VivaVinhos, a subscription that each month gives membersaccess to a selection of wines chosen by experts. InFrance, Monoprix is pursuing its goal of bringing fashionto the masses through the MSR.com website, developingits food range through monoprix.fr and nurturing tieswith some million fans via social media. And Franprix istaking its incubator strategy online, forming partner -ships with start-ups to deliver breakfasts, cheeseplatters, nibbles and meals to homes and offices in Paris and launching a recruitment campaign shared byYou Tubers ■The Group is leveraging its deep local roots to secure growth in the rapidly expanding e-commerce market, drawing on everything from Cdiscount’s leadership model in France,which combines the agility of a pure player with the influence of a long-standing retailer,to the specific digital strategies of the Group’s banners.A pioneering model for the futureactive Cdiscount customers, who bought 49 million products in 20168millionTo guarantee the lowest prices to Cdiscountcustomers, the Group has increased its influence inthe area of non-food purchasing by forming analliance with Conforama, a French subsidiary of theSteinhoff group. Two joint central purchasingagencies have been set up: Casino-Conforama-Achats SARL (Mano-A), which handles productlisting and purchasing negotiations for productsdelivered in France and procured from the mainhome appliance and electronics suppliers, and SICA International Services Sarl, whichnegotiates international services and conditionswith global suppliers.Alliance with Conforamacustomers to benefit from express delivery on allpurchases for €19 a year. The number of members hasmore than doubled in 12 months, impacting both thequantity and speed of order deliveries. Cdiscount hasupdated its supply chain to provide same-day Monday-to-Friday delivery for packages weighing more than 30 kilograms, and seven-day delivery for small andmedium-sized packages. Lastly, Cdiscount strengthenedits relationship with its French customers in 2016 bylaunching mobile phone, streaming and cloud computingdeals.Monoprix fans on Facebook1million32| 2016 ANNUAL REPORT2016 ANNUAL REPORT|33A product offering to meet increasingly higher standardsOnly the tastiestSince the creation of the first Casino-brand products inSaint-Étienne in 1901, private labels have always been acentral development factor for the Group’s banners. Inboth France and Latin America, they offer products in linewith expectations, recognised for their taste and chosenfor their competitive prices. Private labels make an essential contribution to storeappeal, which is why the Group has set up an ambitiousstrategy for developing products that deliver a high-quality taste experience. Thanks to its innovationprocesses, sustainable relationships with suppliers andinternal sensory analysis laboratory, the Group developsexceptionally tasty products assessed each year as partof a continuous improvement process. Its Casino Délices,Monoprix Gourmet and Guichard Perrachon ranges areindustry benchmarks. A champion of affordable, tastyproducts, Leader Price sells a wide array of quality goods,with a special emphasis on the end-of-year holidayseason.Health, a top priorityAs the first signatory of a Voluntary Code of Commitmentto Nutritional Progress in 2008, the Group has madehealth one of the priorities of its food strategy. It issupported in this endeavour by a Health Committee madeup of independents experts, such as an endocrinologist,a food safety expert, an agronomist, an economist, asociologist and a three-star chef. The Committee assistsCasino in analysing the latest scientific trends in the field of nutrition and health and identifying ways tothe area, going as far as substituting conventionalproducts with organic alternatives without raising theprice. This has been the case since 2016 for Monoprixbaguettes and Franprix orange juice. Géant and CasinoSupermarkets also offer a wide range of organic productsand hold significant market share, while Leader Price isexpanding its assortment. Private labels have long been committed to the organiccause, with Casino launching its first organic lines in1999. In France, Group banners market nearly 1,200Casino Bio, Franprix Bio, Leader Price Bio, Monoprix Bioand Naturalia private-label items. In Brazil, more than 20%of GPA’s private-label products are certified organic. Thebanners continue to innovate, constantly expanding theirranges to include new categories. The emphasis was onSince the beginning, the Casino Group has strived to design and market quality foodproducts that meet high taste and health standards while catering to customer needs.To this end, it encourages good agricultural practices and supports responsible livestockfarming methods.A pioneering model for the futurecontinuously improve product quality. Under itsleadership, the nutritional qualities of Casino products areoptimised by reducing their fat, sugar and salt content,and by substituting some of their ingredients withhealthier alternatives. As part of this approach, more than 2,000 recipes have been updated over the past few years. The Health Committee also helps the Group to identifyemerging risks, such as antibiotic resistance linked to theuse of antibiotics in livestock farming. The Group therebyaddresses consumer concerns by encouraging agro-ecology. Working hand in hand with local supply chains,Casino markets poultry and pork products from animalsraised without antibiotics, primarily under the Terre &Saveurs brand. And Casino frozen vegetables are nowguaranteed free from pesticide residue and producedusing strict methods. The range is labelled Agriplus.Organic for allIn 2016, organic products continued to meet withgrowing success among consumers. To cater to thispopularity, the Group is leveraging its multi-format, multi-banner model, a key asset that gives it the opportunityto make organic products affordable for all. In 1990,Monoprix became the first major retailer to marketorganic products, earning a pioneer status that itstrengthened with the 2008 acquisition of Naturalia, anall-organic specialist banner. Organic products todayaccount for 10% of food sales at Monoprix and Franprix.Both banners are implementing proactive strategies inCasino’s “Agriplus”label, a clearresponse toconcerns about theuse of pesticidesand antibioticsFranprixFranprix continues to rollout its private label, whichnow includes nearly 900simple and tasty products,made to the exactingquality standards requiredof suppliers, packageddiscretely so as to keep thefocus on the product, andsold at affordable prices.34| 2016 ANNUAL REPORT2016 ANNUAL REPORT|35satisfying the palette in 2016, with Casino Bio cheeses,chocolates and nibbles, as well as on baby products, withLeader Price Bébé Bio. Lastly, the all-organic scoop-and-weigh sections developed by Naturalia are beingdeployed in some hundred Monoprix stores and in newFranprix stores, and are being tested by Géant and CasinoSupermarkets.Short food supply chainsTo guarantee the origin and quality of the fresh produceit sells, the Group strives to shorten supply chains bygiving preference to small, local producers. In France, theGroup develops partnerships with farmers, winemakers,livestock farmers, wholesale fishmongers and fishingports, in particular through its Terre & Saveurs brand and“Meilleur d’ici”, “Ici en France”, “Ça vient d’ici” and “La Criée”programmes. Géant regionalises its fruit and vegetablepurchases and works closely with local producers to more effectively incorporate seasonality and offer ripeproducts.As part of the “Caras do Brasil” programme, GPA teams upwith craft cooperatives and sells their products at Pão deAçúcar stores. At the same time, it is implementing the“Quality from the source” programme among fruit,vegetable and egg suppliers with the aim of reducingpesticide use. In Colombia, Grupo Éxito is developing aprogramme on best farming practices among fruit andvegetable suppliers, and forming partnerships with small local producers supported by NGOs such as theClinton Foundation■A pioneering model for the future | A product offering to meet increasingly higher standardsA long-term commitment to supply chainsGPA is nurturing its relationshipswith supply chain players andadopting a responsible beefpurchasing policy. Products sold in Extra and Pão de Açúcarstores arenow 100% sourced from chainsthat can guarantee the meat’sorigin and comply with quality and environmentalprotection requirements.THROUGHOUT THE GROUPSpotlightThe number of organic private-label productsoffered by the Group’s banners1,600Casino stores in France sell quality meat from heifersfrom the Massif Central, lambs from Averyon, pigsfrom southeast France and other animals born andraised in traditional farms. As part of its dedicationto offering customers quality products, the Grouphas made a commitment to the French livestocksupply chain. Producers need to be able to anticipatebusiness volumes over the long term in order toinvest and secure their company’s future. Banners,on the other hand, must be able to guarantee theirsupplies. These observations formed the basis of“supply chain contracts”, which offer producers andprocessing companies the visibility they need toensure their development. The last partnership todate, formed under a multi-year agreement for thecreation of an Arcadie Sud-Ouest heifer chain,provides 230 livestock farmers with guaranteedpurchase volumes and prices based on realproduction costs. The cooperatives have undertakento meet certain standards with regard to animals’welfare, environment and feed.PDO cheese and antibiotic-free poultryThe Group goes above and beyond its commitmentby taking over struggling agrifood sites to returnthem to profitability. Its goal is to support producersas they move up the quality chain so that they cansupply products that meet Group brands’ exactingspecifications. Since its integration into the Group,Luché Tradition Volailles in France’s Sarthe regionhas developed a range of 100% French poultryraised without antibiotics, sold under theTerre & Saveurs brand. In the Loire region, theacquisition and upgrade of the Entreprise Laitièrede Sauvain cheese maker, a specialist in ProtectedDesignation of Origin (PDO) Fourme de Montbrisoncheese, enabled the producer to expand its marketin France and create the “Lait des éleveurs desMonts du Forez” label, which is sold in stores.A property strategyin support of retail 36| 2016 ANNUAL REPORT2016 ANNUAL REPORT|37Stepping up business transformationA major strategic challenge for the Casino Group is theability to adapt retailing to suit customers’ changingneeds. The Group’s property management businessserves its retail operations first and foremost, allowingbanners to step up the transformation of their businessmodel by developing sites. The property division notablyprovides support in reducing the Géant banner’s non-foodareas, with surface area reassigned to adjacent shoppingmalls. In Angoulême, the transfer of 2,500 sq.m of Géant selling space made room for an H&M store in 2016, providing a boost for the shopping centre.Strengthening site appealThe second priority of the Group’s property business is to bolster its value-creation strategy by developingextension and property development projects.Renovation and extension operations enhance siteappeal and expand the catchment area while increasingthe value of the property. One of 2016’s mostemblematic projects, the extension of the Fenouilletshopping centre was inaugurated late in the year andfeatures an additional 12 midsized surfaces, 50 newstores, five restaurants and a food court built around abistro by Michelin-starred chef Yannick Delpech.Fenouillet now has a total of 85,000 sq.m of retail area.This strategy is being replicated in city centres withMonoprix buildings, which the Group owns and will beable to develop. Following the disposal of five Monoprixsites in 2015, the property division made two more salesin 2016 for transformation projects. These will involverestructuring and extending the stores’ selling areas,reallocating the stock rooms, and creating new retail andresidential space.Exporting expertiseInternationally, the Group’s expertise in operating andcapturing the value of shopping centres is a differentia -ting strength. Its ambitious aim is to offer everyone aunique customer experience suited to specific localconditions. In South America, operations in Brazil andArgentina are expanding their neighbourhood shoppingcentre concepts with the Conviva and Patagonia brands,respectively, while in Colombia, Éxito has emerged as themain player in the commercial property market throughits Viva centres. Highlights in 2016 included the openingof a combined 64,000 sq.m at Viva Barranquilla and Viva La Ceja, and the establishment of an autonomousproperty entity, Viva Malls. Fondo Immobiliario Colombia(FIC), one of the country’s largest private equity funds,has since bought a stake in Viva Malls, giving the entitythe means to accelerate its development and furtherenhance the appeal of its sites ■Combining retail and property operations in a dual model, the Casino Group has developed an active portfolio management strategy over the years. Its aim is to provideits retail operations with sites that are adapted to the banners’ business strategies whilealso creating value.The total surface area of assets inoperation or under construction held byproperty vehicle Viva Malls in Colombia434,000 sq.mCasino propertyA dedicated division with all of the requisite project management,legal, design and property management capabilities covers everyaspect of the commercial property cycle, from purchasing theland and developing the property to marketing the retail spaceand capturing each property’s full value. The division developsand sells building rights and property projects to partner realestate operators, such as Mercialys.A pioneering model for the futureArgentina: Libertad expandsto 160,000 sq.mThe extension of two shopping centres for a totalsurface area of 15,000 sq.m enabled Libertad toachieve a total of 160,000 sq.m of retail area in 2016,spread among 11 of Argentina’s medium-sized cities.Libertad is now the third-largest property operator inthe country, and the largest outside Buenos Aires.38| 2016 ANNUAL REPORT2016 ANNUAL REPORT|39A pioneering model for the futureCSR as a performance driver The Group’s Corporate Social Responsibility (CSR) commitments are deeply embeddedin its corporate culture. They underpin its strategic decisions and contribute to creatinga sustainable business growth model by improving its social and environmental impact.Building on strong values The Casino Group leads an innovative, proactive CSRpolicy. The aim is to shape a more responsible shoppingexperience and enhance the sustainability of the Group’sbusiness model by engaging in continuous dialogue withstakeholders.The Group's long tradition of social and environmentalinnovation and its four core values (Entrepreneurship,Loyalty, Rigour and Shared Responsibility) form the basis of its CSR policy. This policy is implemented in linewith the overarching inter national principles towhich the Group adheres:the United Nations GlobalCompact, the InternationalLabour Organization’sGlobal Business and Disability NetworkCharter, and the Women’s EmpowermentPrinciples, an initiative of UN Women. On the forefront to combat discrimination and activelyengaged in promoting more sustainable consumption,Casino was the first retail group to earn France's DiversityLabel in 2009 and Workplace Equality Label in 2013 andto advocate environmental product labelling. From commitment to strategic focusThe Casino Group’s stepped up its long-standingcommitment in 2010 by creating a corporate CSRdepartment. A core pillar of its sustainable developmentpolicy, the Group’s “Spirit of CSR” continuous improve -ment programme launched in 2011 focuses on five keyareas of action. Today, it resonates throughout all Groupbusinesses and contributes to building a lasting businessmodel. Helping to drive growth in a number of ways, theprogramme boosts employee motivation and dedication,makes the Group more competitive by improving itsenvironmental impact and stimulates demand forresponsible products. With support from the highestlevels of the organisation, action plans are vigorouslyimplemented by the banners and cover every area of thecompany, including purchasing, private labels, operations,logistics and more. Committed employer■Promote diversity■Help young people enter the workforce■Provide growth opportunities for employees■Take action for health, safety and well-being at work Responsible retailer■Take action to protect consumer health■Encourage consumption that is respectful of the environment and biodiversity■Combat food wasteTrusted partner■Strengthen ethical social compliance■Support local production channels■Promote the CSR initiatives of suppliersLocal corporate citizen■Develop foundation programmes■Develop solidarity partnershipsEnvironmentally proactive Group■Reduce greenhouse gas emissions■Increase energy efficiency■Reduce and recover wasteQuantifiable, measurable progressAttesting to its commitment, the Group’s CSRperformance is measured using specific indicators alignedwith its 15 priorities. For example, in 2016, the CasinoGroup improved its performance, increasing the numberof employees with disabilities by 5%, the percentage ofwomen managers by 2 points, the number of organicproducts by 12% and the percentage of waste recycledby 2 points. More than 32 million meal equivalents were donated to food banks thanks to the work of228,000 employees, i.e., a 21% increase. The 15 priorities of the “Spirit of CSR” continuous improvement programmePromoting social dialogueHuman resources and CSR policies are built on thebasis of regular dialogue with employeerepresentatives. In 2016, this long-nurturedrelationship led to the renewal of fundamentalagreements for the Group and its employees in theareas of workplace health and safety, employee-management relations, CSR and strategic workforceplanning.40| 2016 ANNUAL REPORT2016 ANNUAL REPORT|41A pioneering model for the future | CSR as a performance driver The Group also reduced the amount of power used atstores 5% by implementing action plans and cut thedistribution of single-use plastic bags by 11% (excludingAssaí).CSR, an intrinsic factor in performance indicatorsFirmly rooted in the Group’s corporate culture, CSR issuesare now included as performance indicators for managersand executives. This means that a component of thevariable compensation paid to the Casino Group Chairmanand Chief Executive Officer is determined based on theGroup’s CSR performance, measured as part of one of thethree non-financial indices. In France, the Group-wideManagerial Attitudes and Behaviours handbook aims toreinforce a management culture that upholds Groupvalues. Representing 30% of the pay metrics applied incalculating variable compensation, these guidelines wereamended in 2016 to incorporate CSR criteria. Outside France, quantitative CSR targets are nowfactored into managers’ variable compensation. In 2016,managers in Brazil were reviewed based on quantifiedperformance targets covering gender equality, disabledworkers and energy consumption. In Colombia, variablecompensation is determined based on indicators relatingto local sourcing and financing for Éxito Foundationinitiatives, more specifically its "Gen Cero" programme ■“At Franprix, CSR creates a virtuouscircle for operations teams” Joining the Group incombating food waste, with6 million meal equivalentsdonated in 2016,Monoprix raises customerawareness and continues toinnovate with Re-Belle jams.Re-Belle collects unsold fruitremoved from about a dozenMonoprix stores and makesjams out of them at a specialworkshop that promotesemployment. The jams aresold at Monoprix stores in Paris.THROUGHOUT THE GROUPWhy choose waterway shipping to deliver goods to Franprix’s Paris stores?Given the difficulty getting into Paris to supply ourstores, we decided to use a boat that travels alongthe Seine River from our warehouses in Val-de-Marne to the foot of the Eiffel Tower. This efficientsolution is in line with the Group’s target to reduceour carbon footprint. When the project was launchedin 2012, 80 stores were being stocked this way. As from 2016, we deliver dry goods to more than300 stores in the Paris region via the Seine. InterviewStéphane Tuot, Head of Logistics at FranprixThe Group’s non-financial performance isconstantly improving. Casino is listed in anumber of socially responsible investmentindices, which include the companies with thebest performance based on environmental,social and governance criteria: FTSE4GOOD,Euronext Vigeo Index (Eurozone 120, Europe 120, World 120 and France 20), Ethibel Sustainability Index Excellence Europe,MSCI Global Sustainability Index and STOXX®Global ESG Leaders Indices. In May 2016, therating agency Vigeo Eiris ranked the CasinoGroup as the number one retail company, andÉxito and GPA took the second and thirdpositions respectively in emerging countries.The Group also improved its rating in the DowJones Sustainability Index by 6 points between2015 and 2016. Casino has reported to theCarbon Disclosure Project (CDP) since 2013.Strategy valued by benchmark indicesWhat other logistics projects atFranprix integrate CSR commitments?They all do! At Franprix, CSR issues are handleddirectly by the different departments. Sustainabledevelopment isn’t viewed as a restriction for ouroperations teams, it adds a new dimension to ourprojects. Viewed in that light, CSR is a virtuous circlethat creates an economically viable business.Is the collection of unsold goods in line with this philosophy?It’s hard to organise the collection of unsold freshproducts store by store in an urban setting. That’s whywe’ve developed a seamless logistics process inpartnership with Phénix, a socially engaged companythat connects stores with neighbourhood charitiesand finds service providers to transport products withshort expiry dates by electric delivery tricycle everymorning. The equivalent of more than 250,000 mealsmade with fresh produce have been donated to some60 charity organisations in the Paris region since theproject’s launch in early 2016. This is another exampleof how we’ve created a sustainable developmentmodel.The Casino World CommunityWith more than 18,000 members, the Casino Group socialnetwork continues to build connections that defy geographicaldistances. The Casino World Community has been redesignedand enriched with fresh content to encourage employees toshare best practices in a dedicated forum, boost professionalefficiency and enhance personal development with the “Easylearning” page. A new interactive discovery experience buildsusers’ knowledge about the Group, especially its CSRcommitments.CSR GovernanceThe CSR programme is managed at the highest level of theorganisation under the responsibility of the CSR StrategyCommittee, which is made up of 12 members, eight ofwhom also sit on the Executive Committee. They validateCSR policy aims and monitor their application in theGroup’s different entities. The programme is rolled out bythe Group’s CSR department, which leads a network ofdedicated correspondents in France and internationally.Dynamic, innovative banners!Dynamic, innovative banners44| 2016 ANNUAL REPORT2016 ANNUAL REPORT|45FranceAs Casino’s historic hub, France plays a core role in the Group's strategy ofdifferentiation and increasingly granular segmentation by format. More than ever, the innovative, sales-driven French banners are reaffirmingtheir strength.2016 net sales breakdown69,835employees(on payroll under permanent or fixed-term contracts at 31 December 2016) 9,855stores 38%40%22%Value bannersPremium bannersConvenience banners(including Franprix)2016 ANNUAL REPORT|47Dynamic, innovative banners | FranceA network of powerful, agile banners With attractive, tailored concepts, quality products, innovative services and greater focus onthe shopping experience, the Group’s French banners assert their identity and continuouslyevolve to remain a step ahead of ever-changing consumer habits.46| 2016 ANNUAL REPORTEncompassing Géant,Casino Shop, Monoprixand Leader Price, theGroup has built anextensive network ofmulti-format bannersthroughout France. Its nationwide coverageenables it to stay closeto consumers.Géant continues its transformationFor Géant Casino, 2016 was a year of steady businessgrowth. The banner took advantage of its pricepositioning and continued its transformation. Sales rose,particularly in food products, where growth in net salescame to 2.7%. This performance confirms that Géant hastaken the right strategy of broadening its food offeringand reducing non-food retail space, especially in productcategories that compete with e-commerce. The newGéant look features an expanded market space in thespirit of a covered market hall, emphasising food servicesand local produce. The concept includes a redesigned beauty area based onformats applied in specialised retail, an updated andexpanded apparel department to highlight private-labelcollections, a housewares department showcasing themodern design of the Finlandek line and a selection ofappliances available in the Cdiscount corner. And all in asmaller retail space. In touch with customersThe Group’s agile property model made it possible toreduce the surface area of hypermarkets by 1.6% in2016, with further scalebacks planned for 2017. Teamshave been reorganised to be more available for customersin the market area and beauty department, at checkoutcounters and the customer reception desk. A skillsdevelopment programme has been rolled out to enhanceexpertise and knowledge about products, and betteradvise customers. And customers have respondedpositively. In 2016, market share rose 0.1%, and net salesper square metre increased 3%. At the same time, thebanner has reviewed its methods to develop operationalexcellence in stores to reduce logistics costs, limit supplyshortages and speed up checkout times. Leader Price: back to basicsThe substantial improvements to operating processes area key priority in Leader Price’s strategy to get back tobasics as a neighbourhood retailer. 2016 marked thebanner’s return to fundamentals. Itsnew blue and red logo symbolisesthe fight Leader Price has led sinceit was founded to maintain productquality at aggressively low prices.The new concept upholds this identity. The shoppingexperience has been refreshed, with a revitalisedcustomer journey, enhanced fragrance, wine, fruit andvegetable departments and new displays that moreDeveloping Naturalia’s all-organic modelThe banner gained market share and continued toexpand, with 20 stores opened in 2016.delivery solution that serves customers in less than anhour. Shoppers leave their items at store checkout andpay on delivery. The Monoprix group is very dynamic,opening 60 stores in 2016 in all its formats, such as theNaturalia flagship in Paris suburb Les Lilas..Franprix revolutionises the convenience conceptDriven to reinvent its business as a retailer to keep pace with changing consumer habits, Franprix isrevolutionising the convenience store format with itsMandarine concept. Stores are being transformed intoplaces where customers can relax and socialise. In a spacecovering 400 sq.m, they can find everyday essentials,including many Franprix private-label products, as well asa condensed version of their small neighbourhood shops,featuring meat and cheese counters, hot and cold snacks,a café area with WiFi access, freshly squeezed organicjuice, in-store postal services, a Western Union office andeven a key-cutting machine. Innovation is everywhere,and teams are fully available to serve customers. Throughtheir training at the Mandarine Academy, employeesdevelop their professional expertise and social skills. Forfaster checkout, mobile cashiers equipped with paymentterminals and a "ring" scanner approach customersdirectly. At the end of 2016, 60% of stores had switchedto the Mandarine concept. The programme will be fullyrolled out by end-2017 and will continue to develop.Franchises take offFollowing the example of Franprix, the conveniencebanners are rejuvenating by updating their offering andstore concepts while rolling out new services with freshproduce, local products, fragrance counters and rotisseriegrills. More than 6,000 stores form the Group’s historicalcore, providing nationwide coverage with a variety ofspecific banners adapted to urban, suburban and ruralareas. 2016 was a year of transition when franchisingtook off. Very small outlets were shut down, and morethan 60 integrated stores were converted to the moreentrepreneurial franchise model within Casino Proximité.Today, 77% of the Group’s stores are operated under afranchise or partnership agreement. The highly efficientVival and Spar franchise networks feature numerousinnovations, including the Spar Lib’ order terminalsinstalled at campsites and the Vivalivres libraries withbooks available for loan. Petit Casino is preparing for themetamorphosis of its stores in 2017, again with theintention of re-embracing the local business spirit anddeveloping services ■Dynamic, innovative banners | France48| 2016 ANNUAL REPORT2016 ANNUAL REPORT|49clearly mark out the range. The offering itself is evolving,with highly affordable, quality products – new organicproducts, baked goods, local products and holiday ranges– and attractive promotional campaigns. With 143 storesconverted into franchises, the banner is balanced, withhalf of its outlets now operating as integrated stores andhalf as franchises.Casino Supermarkets reasserts its personalityWith 125 new food service areas opened in 90 stores,Casino Supermarkets is shifting its focus back to freshproduce and moving the range upmarket. The new lookof the market sections has boosted business throughoutthe store. Clearly aimed at the premium segment, thebanner highlights service and the shopping experience,introducing numerous innovations, upholding productquality, developing employee professionalism with itsBest in Fresh Academy and improving its operationalexcellence practices. In the 15 renovated Paris stores, sales have increased by7.5%. This performance is a reflection of innovativepromotional campaigns, such as Casinomania in June, theSummer Tour and the 100-day Casino Folies event at theend of the year. The banner’s net sales advanced 3.8% in 2016. Monoprix, in a league of its ownMonoprix’s special relationship with its customers grewstronger in 2016. The banner has 1 million Facebook fans and brings customers a different experience at itsstores, mainly through its unique food, fashion andhousewares assortments. A pioneer in driving responsibleconsumption, Monoprix takes concrete action with itsprivate label and offers products in its food service areasthat deliver a superior taste experience. The Monoprixlabel also includes clothing lines. Created by its team of150 designers and fashion experts, the collections marka clearly defined style combining quality and the latesttrends. Its collaboration with recognised designers addsa touch of high fashion to stores, such as the collectionof Calais lace bridal gowns by Lorafolk. Two new rangeswere introduced in 2016, Monoprix Fit (sports clothing)and Monoprix Ski. The banner also launched a homeCasino Restauration: the spirit of local businessThe programme to convert self-service cafeteriasinto traditional À La Bonne Heure restaurants wascompleted in 2016, with more than 100restaurants now open at shopping centre car parks. Their operating system changed in 2016, withrestaurants now under franchise or managementlease. With the support of Casino Restauration,salaried management employees are nowbecoming restaurant business owners. Alsoembracing the entrepreneurial spirit, the Cœur deBlé take-away snack concept has been verysuccessful in shopping centres. CasinoRestauration also continues to diversify itsbusinesses, with strong growth in R2C foodservice and Saint-Once catering services, whichenjoyed a boost during the UEFA Euro 2016football championship.number of active Franprix card holders1.7million“In food services, the talentof our teams is what makesthe difference ”InterviewHow will the market areas betransformed at Casino Supermarkets?For the past year, we’ve been working on a projectto recapture the premium food segment by boostingthe appeal of traditional fresh produce. This strategynaturally encompasses both the offering and thestore concept. For example, we work with smallproducers to offer tasty varieties of fruit andvegetables that are picked when ripe. We’re alsointroducing orange juicers, home-made pizzas, sushibars, a hot and cold snack range, meat and pastryspecialities, and more, to provide a comprehensiverange of appealing options. We also pay closeattention to organic products and new consumerpreferences for gluten-free or animal protein-freefoods. But what really makes the difference in stores is the skills of the people who work with theproducts.What role does expertise play in the refresh?Expertise is the heart of the matter. There’s a realshortage of competent professionals in these fields, even though cooking shows have made them popular with young people. For CasinoSupermarkets, the point is to share best practices,support employee development and enhance theirskills. What steps are you taking to achieve that goal?Specifically, in each region we’re setting updepartment-schools for each area of food service:fruit and vegetables, seafood, meat, cheese-deli,pastries and baked goods. All employees working in these fields will participate in practical trainingsessions on products and the skills of the trade. Andof course, they’ll continue to receive support andguidance to keep their techniques up to date. Theidea is to develop their taste for products and turnthem into top professionals. That’s also why welaunched the Best Professional Worker Challengesin stores in 2016, to highlight the value of our teams, foster healthy competition betweenemployees and show customers the extent of theirtalent.employees have receivedtraining800Casino Supermarkets is determined to recapture the premium food segment,shifting its focus to honour in-store food services. This transformation willdevelop by leveraging expertise, as explained by Serge Margaridenc, Director oftraditional fresh produce.In Colombia, the integration ofSuper Inter, a bannerspecialised in fresh produce, hasprovided a way of developing theexpertise of workers from the fruit,vegetable and meat departmentsat all Grupo Éxito stores. Bestpractices to improve ordermanagement and meat cuttingtechniques and reduce breakage,etc. were rolled out at 250 Éxitoand Surtimaxstores. This had adirect impact on sales, which rose30% for fruit and vegetables and25% for meat products.50| 2016 ANNUAL REPORT2016 ANNUAL REPORT|51Dynamic, innovative banners | FranceTHROUGHOUT THE GROUPSerge Margaridenc, Director of traditional fresh produce at Casino SupermarketsDiversityTour de FranceThe Group is bridging the diversity gap with the first edition of thediversity Tour de France organised in 2016. Twelve meetings and debatesled by an independent expert took place in Casino stores, restaurants andwarehouses in France, bringing together managers, employees and Groupdiversity representatives.52| 2016 ANNUAL REPORT2016 ANNUAL REPORT|53HISTOIRE(S)D’UN ENGAGEMENT QUOTIDIENAU SEIN DU GROUPE CASINOLE MANAGEMENT BIENVEILLANTManagementCaring management can be learntNow with 4,200 managers trained, an e-learning course availableonline and an expanding network of workplace well-being experts,the caring management programme is gaining momentum in France.The Human Resources department published “Caring Management,the story(ies) of a day-to-day commitment”, a collection of personalaccounts from 50 Group managers describing their experience inimplementing this commitment on an everyday basis.EnvironmentClean vehiclesThe logistics subsidiary Easydis announced that, betweennow and 2020, it would roll out a fleet of 400 vehiclespowered by natural gas, reducing fine particulateemissions by 85%. Monoprix pledged to triple the numberof trucks running on CNG (compressed natural gas) by theend of 2017, and Franprix has started replacing trucks tosupply its Paris stores, with the first 20 vehicles inoperation in 2017.Gender equality Combating sexismTo combat stereotypes that lead todiscrimination, the Group produced the“Combating everyday sexism” guide, basedon a field survey of employees. Its effortsearned it the "No More Clichés" awardpresented by Communication & Entreprises,as well as the LSA Diversity and CSR Awardand the Gender Diversity Award from AgenceMixité Entreprise.Sustainable consumptionMonoprix Tous Cultiv’acteursThe first fruit and vegetables with the Monoprix TousCultiv’acteurs label are being introduced in stores. Monoprix ishelping its partner producers to move towards moreenvironmentally friendly farming practices by reducing the useof pesticides in order to protect pollinators. The upshot forcustomers is healthy products that taste good.SolidaritySocial responsibilityThe Casino Group Foundation launched aprogramme in 2016 to promote thesocial responsibility of employees. A dedicated website posts volunteeropportunities available with more than30 partner organisations. Overviewof CSR actions in FranceDynamic, innovative bannersAnimal welfareCommitment to the welfareof egg laying hens Following in the footsteps of Monoprix – the first retailer to remove all eggs produced by caged hens from its stores –Franprix, Leader Price and Casino stores also made thecommitment to stop selling any eggs produced by cagedhens at their stores by 2020.Dynamic, innovative banners54| 2016 ANNUAL REPORT2016 ANNUAL REPORT|55ColombiaThe country’s long-standing top retailer, Grupo Éxito takes advantage of itsmulti-format, omni-channel model to support sector growth. From the premiumfood market areas at Carulla to the discount departments at Surtimayorista, itsbanners innovate to meet the needs of all consumers.41,614employees(on payroll under permanent or fixed-term contracts at 31 December 2016) 1,873stores 205store openingsGrupo Éxito : No.1retailer+10.8%organic net sales47%No.1private employeremployees under 302016 ANNUAL REPORT|57Dynamic, innovative banners | ColombiaGrupo Éxito: an undisputed leader with a pioneering spirit With high-performing, multi-format banners boasting a strong identity, an ambitious propertystrategy and e-commerce operations backed by banners, Grupo Éxito – an integral part ofColombian society – is sustaining its long-term business model and continuing to pick up on trends.56| 2016 ANNUAL REPORTGrupo Éxito isconsolidating itsleadership on theColombian market withthe premium bannerCarulla, the vast networkof Éxito hypermarketsand supermarkets andthe fresh productspecialist Super Inter. The group continues toroll out its conveniencebanners and is developinga new discount format,Surtimayorista.Cross-fertilisationBy bringing its Latin American subsidiaries under theGrupo Éxito banner in 2015, the Casino Group has builtan organisation designed to create value. The programmeof leveraging synergies is now in full swing. Éxito’srecognised expertise was deployed outside Colombia in2016. The transfer of expertise in apparel lines (see p. 60) has enabled GPA in Brazil and Libertad in Argentinato develop their offering faster. The concept of “aliados”(allies) inspired the launch of Brazil's Compre Bemconvenience stores in São Paulo (see p. 69). Lastly,Uruguay continued to open its Devoto Express outlets,modelled after the Éxito and Carulla Express convenienceformats. The May 2016 opening of the first cash & carry store inBogotá, Colombia under the Surtimayorista bannerreflects the knowledge being shared between LatinAmerican subsidiaries. The new banner applies thefundamentals of Brazil’s Assaí network: an efficientwholesale business model aimed at restaurant ownersand families looking for the lowest prices. The cash &carry model effectively satisfies the changing needs ofAliados Surtimax and Super Inter stores in 2016, a surge of 20% over one year.1,307has met with huge success in the 68 stores where it isfeatured.Grupo Éxito reaches its core low-to-mid-income customer base through Éxito, a business-driven banner popular with customers that operates hypermarkets,supermarkets and convenience stores throughoutColombia, and the Super Inter banner, which is wellestablished in the western region of the country. With itsspecialist knowledge in fresh produce, Super Inter sharesthe Colombian market. A second pilot store, also in theColombian capital, will open in 2017 before thenationwide launch. A leader in every formatThe undisputed No. 1 retailer in Colombia, Grupo Éxito isstrengthening its top position in the country where itnow serves 49.1% of the formal market1. It continues totap into new consumer habits and is driving growth in theColombian market to unlock maximum potential in eachof its formats.Carulla, its premium supermarket banner, offers a high-quality food range and a service-packed customerjourney. Carulla’s new craft baked goods concept,developed by a French pastry chef from Géant Casino, preparing the launch of the apparel collections into e-commerce. Backed by the banners, exito.com and carulla.com havewidened their lead on Colombia’s online market and areplaying a pioneering role in supporting its growth. Theirclick & mortar model creates logistical and salesgateways to physical stores. Interactive terminals havebeen installed at more than 130 supermarkets tobroaden their offering of non-food products. Sales fromthis digital catalogue increased by 50% during the year.Two events in 2016 will shift operations into higher gear.The release of the mobile versions of exito.com andcarulla.com, which already drive 50% of traffic, willreinvent the shopping experience, while the launch of the marketplace will significantly expand the onlineselection. With total sales up 25%, business growth is setto take off ■with all Grupo Éxito teams its expertise and bestpractices in working with fruit, vegetables and meat.Active in the discount market through the Surtimaxbanner, Grupo Éxito is pursuing its responsibleprogramme of forming alliances with small, traditionalstores. The local shops that join the network benefit fromthe Group’s quality standards and operational expertise.Their sales have grown by an average of 70%. Colombianow has more than 1,300 Aliados Surtimax and SuperInter outlets.An omni-channel, non-food modelGrupo Éxito’s development potential is also driven by itsnon-food operations. The apparel collections in particularare a major factor in enhancing the appeal ofhypermarkets and supermarkets. They account for agrowing proportion of the Group’s total sales, whichrepresented 13% in 2016. An historical advantage forÉxito, the apparel lines have enjoyed record growth inprivate-label sales, which increased 52% over the year as a result of their new price positioning. The Group isDynamic, innovative banners | Colombia58| 2016 ANNUAL REPORTViva Malls, leading operator ofshopping centres in ColombiaWith two openings in 2016, including the 64,000 sq.m Viva Baranquilla centre, and the set-upof its subsidiary Viva Malls, Grupo Éxito iscontinuing to expand its property operations. Theinvestment in its share capital by a major financialpartner will bring opportunities for new projects.Viva Malls currently operates 12 shopping centresand is building two additional complexes. One ofthese is the 140,000 sq.m Viva Envigado project setto include 240 shops. Viva Envigado will beColombia’s largest centre when it opens in 2018.Uruguay: launch of the Disco Fresh Market bannerThe Uruguayan subsidiary Disco has opened its very firstFresh Market store, dedicated to fresh produce, in thefamous resort town of Punta del Este. This novelpremium concept based on top international standardsdemonstrates the strong innovative edge of Grupo Éxito.1 Source: Nielsen, figures at 31 December 2016.2016 ANNUAL REPORT|59“Sales of our private-labelapparel brands have jumped 52%”Irina Jaramillo Muskus, Director of Apparel Collections at Grupo ÉxitoInterviewTHROUGHOUT THE GROUPWhat do you think explains Éxito’s success in apparel?Apparel was Éxito’s initial business when it wasfounded in 1949. Today, our performance is basedon a clearly defined strategy. The objective is tomake fashion affordable for all Colombians. Toachieve that, we’ve developed 11 key private labels,which account for almost half of our apparel sales,and a local production model: 92% of products comefrom 290 workshops operating in eight Colombiancities. Our design offices monitor trends andcontinuously launch new collections. The operatingstructure is very agile. It takes less than two monthsto bring an item from the design table to the storeshelf. And in stores, the layout of the displays andthe expertise of apparel sales staff, trained at ourspecialised school, are valuable assets. Could you describe the new appareloffering launched in 2016?More than a new offering, it’s a new approach. Tooffset the economic downturn and the drop inColombians’ household income, we decided to rethinkour business model. The idea is to offer nice, qualityclothing at low prices, all year round. The prices onprivate labels have fallen nearly 40% withoutsacrificing on quality, and collections are rotatedfaster. And that’s brought results. Visit frequencyhas jumped 16%, volumes are up 82%, and saleshave grown 52%! What do you hope to achieve in the future?Our next challenge is to further strengthen our brandsby developing an omni-channel approach. In 2017, weplan to launch dedicated websites for each brand andboost online sales.2016 ANNUAL REPORT|61number of apparel products sold byGrupo Éxito in 2016, of which 43% under private labels51million60| 2016 ANNUAL REPORTDynamic, innovative banners | ColombiaGrowth in the apparel segment, one of the banner’s historical businesses, pickedup in 2016. The Director of Apparel Collections, Irina Jaramillo Muskus,discusses one of the core areas of expertise at Éxito, which has built itsstrategy on 11 key brands and an efficient local production model.Éxito’s apparel expertise is beingdeployed throughout the Group. In2016, 400,000 items wereexported to Latin Americansubsidiaries. Grupo Éxito supportsGPAand Libertadinimplementing the business modelthat has driven its success: shortsupply chain, sales teams trainedto act as real style consultants,merchandising that enhancesproducts and fast collectionrotation. To rework its strategy inFrance, Géantbrought in its newDirector of Apparel, Ana Lora, fromGrupo Éxito.2016 ANNUAL REPORT|6362| 2016 ANNUAL REPORTSolidarityÉxito takes action for Gen CeroSpearheading Gen Cero, the nationwide programme to combat childmalnutrition, the Éxito Foundation has joined forces with its public and privatepartners to reach its objective for 2030 to ensure than no Colombian childunder five suffers from malnutrition. In 2016, the programmes benefited38,920 children across 50 cities in Colombia. Éxito was a driving force overthe year in developing the early childhood protection law in Colombia.Gender equality “Mujeres de Éxito”In 2016, Grupo Éxito set up a gender equality committeein charge of steering its action plans. Also during the year,300 employees participated in "Mujeres de Éxito", a seriesof conferences and focus groups organised in Bogotá, Caliand Barranquilla to discuss the topics of leadership andcommunication. Energy5,631 sq.m of solar panelsTwo new solar power units were commissioned at Éxito locations in 2016,including the largest in Colombia, which is installed on the roof of the new VivaBarranquilla shopping centre. These units bring Éxito’s total solar panel surfacearea in the country to 5,631 sq.m.Overviewof CSR initiatives in ColombiaDynamic, innovative bannersWaste“Limpiemos Colombia”Éxito supports the "Limpiemos Colombia"campaign, or Clean up Colombia Day, a daydedicated to cleaning public spacesnationwide, in partnership with the Ministriesof the Environment and Trade and WWF. Morethan 23,000 volunteers worked with thecampaign, collecting 113 tonnes of waste.Workforce integration777 first jobsAs part of the Colombian LabourMinistry’s 40,000 first jobsprogramme, Éxito gave 777 youngpeople aged 18 to 28 their firstwork experience in its stores.PurchasingGrowing support for local producersGrupo Éxito supports responsible farming and fishingand sources a growing portion of its products fromlocal production channels. In 2016, the Group bought86% of the fruit and vegetables sold in stores from756 small-scale producers, and 1,550 tonnes of fishfrom 1,500 family-owned fishing businesses.Dynamic, innovative banners64| 2016 ANNUAL REPORT2016 ANNUAL REPORT|65BrazilThe retail leader GPA is pursuing its vision of keeping pace with the ever-shifting shopping behaviour of Brazilians in a modern, multi-cultural societyby developing its portfolio of complementary banners with a strong,differentiating identity.100,523employees(on payroll under permanent or fixed-term contracts at 31 December 2016) 1,135stores+11.7%GPA Food organic salesemployer in food retail+39.2%Assaíorganic salesGPA : No.1retailerNo.166| 2016 ANNUAL REPORT2016 ANNUAL REPORT|67Dynamic, innovative banners | BrazilRanging from cash & carry to premium: GPA’s winning model GPA is returning to basics and shifting its focus back to its historical core business, food. In this way, the Group is stepping up growth at its most profitable banners to leverage thestrength of its multi-format, multi-banner model.The profound changesmade to enhance GPA’sbusiness model werereflected in 2016 in thetakeover of Extra Hiper,continued growth ofAssaí, the resilience ofPão de Açúcar and therapid expansion ofconvenience outletsacross all segments,with the launch ofAliados Compre Bem,the banner designed forsmall independentstores.Back to the sourceAs a long-standing market leader, GPA owes its successand resilience to the improvements it has made in linewith the fundamental principles of the retail industry:operational excellence, process optimisation and stream -lined operations. At the same time, its multi-format andmulti-banner model gives it the capacity to adapt itsportfolio to changing consumer practices. This has ledGPA to begin selling its interests in non-food retailbusinesses under the Via Varejo banner. In so doing, GPAis focusing once again on its original core business – foodretail – and is adapting its portfolio of stores to channelinvestments into the most successful formats. Aprogramme to convert some Extra hypermarkets toAssaí’s cash & carry format began in 2016 and hasproduced outstanding results, far outstripping forecasts. Assaí: full speed aheadAssaí’s success shows no sign of slowing. Originallyintended for professionals, the cash & carry model hasproved increasingly popular among individuals impactedby the recession as they seek out lower prices by buyingwholesale. The comprehensive business model developedby Assaí is robust and efficient, and can be implementedrapidly. The banner opened 13 stores in 2016, includingthree in new states and two conversions. It surpassed the symbolic milestone of 100 stores and ended the year with 107 outlets operating in 16 Brazilian states.Performance has been exceptional, and sales climbednearly 40% in 2016. A genuine driving force for GPA,Assaí is consolidating its No. 2 market position andintends to maintain its fast-paced development.Extra hypermarkets are scheduled to comeunder the Assaí banner in 201715 to 2068| 2016 ANNUAL REPORT2016 ANNUAL REPORT|69Pão de Açúcar, enhancing the shopping experienceOver the years, the premium banner Pão de Açúcar hasforged a unique relationship with its customers. It is oneof the most respected brands in Brazil’s retail industry.Pão de Açúcar is focusing more than ever on theshopping experience at its 185 stores, in a continuousdrive to enhance service quality, expand the productassortment and strengthen ties with customers, evenbeyond its physical stores. The Pão de Açúcar Mais loyaltyprogramme upholds this philosophy, extending therelationship to the Internet with a dedicated applicationand continuing to innovate by offering originaladvantages. Extra regains sales momentumAfter completely repositioning its pricing strategy, ExtraHiper has launched a revitalisation initiative that isstarting to pay off. Turning around a business meansimproving fundamentals: product assortment and layout,consistent supply, faster checkout and a new approachto promotional deals. Campaigns were developed in linewith consumer trends, such as the large-scale 1,2,3programme offering discounts on a thousand productsevery week: 20% on the first, 50% on the second, thethird for free. In the non-food segment, Extra alsorevamped its apparel lines after working with Grupo Éxito,which shared its expertise and private-label collectionswith the banner. Customers love it, and this shows in itsperformance. At the end of 2016, sales volumes wererising, and hypermarkets were steadily regaining marketshare.Pioneer in convenience stores Closely in sync with new consumer behaviours, theconvenience concept remains a strong growth driver. GPAcontinues to deploy its banners and is moving towards amore clearly defined segmentation of its formats. TheGroup is ramping up expansion of the Minuto Pão deAçúcar premium banner, an immensely popular formatamong urban shoppers, with 14 new stores opened in2016. Continued double-digit growth in sales shows thatthis strategy is on track. Additionally, GPA has leveragedsynergies with Grupo Éxito and come up with a newconcept aimed at reaching a low-to-mid-income customerbase, Aliados Compre Bem. Based on the “aliados”programme in Colombia, some one hundred AliadosCompre Bem stores cropped up in São Paulo this year.This win-win model is based on forming partnershipswith small, traditional shopkeepers, which carry theprivate labels Pra Valer and Qualitá and draw on GPA’soperational expertise to develop their outlet within thesurrounding neighbourhood ■Pão de Açúcar has made its first foray into the onlinewine market with the Viva Vinhos programme availableon its website. The service provides access to a selectionof wines hand-picked by banner experts. The customerchooses the type of subscription and number of bottles,and every month receives wines at home free of deliverycharges. On top of these additional services, the entire e-commerce offering of Pão de Açúcar and Extra wasrestructured in 2016. The delivery system was alsoentirely redesigned with a new distribution hub openedfor online sales.Dynamic, innovative banners | BrazilPão de Açúcar Mais attracts 4 million membersGPA’s premium banner enjoys unrivalled brandaffinity with its customers. It has 1.2 millionFacebook fans, and the Pão de Açúcar Maisloyalty programme exceeded the 4 millionmember mark in 2016. The smartphone appprovides access to all of the programme'sadvantages. The online strategy has producedtangible results, as Mais customers account for agrowing portion of the banner’s net sales,representing 70% in 2016.Minuto Pão de Açúcar,the upscale convenience storeSpotlightAs soon as customers enter the store, which istastefully decorated with creative signage, woodfixtures and elegant lighting, they find high-qualityfresh produce that is beautifully and intelligentlydisplayed. “That’s how the banner surprisescustomers,”says Marcelo Bazzali, Executive Directorof GPA Convenience. “The average Minuto Pão deAçúcar store carries more than 4,000 items in aspace of barely 250 sq.m right in the customer'sneighbourhood.” The assortment takes care of theiressential shopping needs for the week while alsofeaturing products that set Pão de Açúcar apart, withhighly regarded private labels – Taeq, Casino Délices,Club des Sommeliers – a wide selection of organic,gluten-free and salt-free products and health food,along with high-quality fresh bread. Minuto Pão deAçucar is the go-to store for the latest food trends. A shopping experience on par with the bestChosen by the magazine Canadian Grocer as one ofthe “25 grocery stores to visit before you die”, thebanner’s stores take great pride in being distinctive.Its wealthy, young and active urban customers enjoya shopping experience that meets the highestinternational standards.“Where Minuto truly standsabove other convenience banners is in its servicequality,”Marcelo Bazzali points out. “In a store, youhave tangible features, such as assortment andlayout, as well as other, less tangible features, such as friendly, caring staff. Employees who feel valued understand how to treat customers well.”The quality of management is also integral to the banner’s success, as are its responsiblecommitments. Fitting refrigerated display caseswith doors, recycling used products and, mostrecently, implementing the “Projeto Arredondar”programme (see p. 73) have all contributed toshaping this unique identity.Minuto Pão de Açucar stores opened in 201614The banner’s 76 convenience stores operating in the states of São Paulo andPernambuco feature a unique atmosphere aligned with the high standardsexpected by customers.Not just stores, but a pleasantenvironment and customerexperience in itself, FranprixinFrance continues to make best useof its Mandarine concept torevolutionise the convenienceretail format. In a 400 sq.m space,the banner offers meat and cheesecounters, a vast selection of foodto go and freshly squeezed orange,grapefruit and pomegranate juice.Franprix also provides uniqueservices, such as key cutting,Seattle's Best Coffee1, parcel pick-up with La Poste, moneytransfers with Western Union, and more. This determined,service-drivenstrategy is madepossible through the MandarineAcademy, which promotes aculture of expertise and socialskills among staff.70| 2016 ANNUAL REPORT2016 ANNUAL REPORT|71Dynamic, innovative banners | Brazil1 In partnership with Starbucks.THROUGHOUT THE GROUP2016 ANNUAL REPORT|7372| 2016 ANNUAL REPORTDiversity“GPA Iguais”As part of the "GPA Iguais" programmeinitiated in 2016, GPA issued a diversityguide for managers and introduced"Diversity Minute" meetings to encouragedialogue on combating discriminationwithin teams.Recycling“Novo de novo”In 2016, the "Novo de Novo" circular economyprogramme manufactured more than 3.7 millionitems of product packaging for the Taeq andQualitá private labels using cardboard collectedfrom 200 recycling stations set up in Extra andPão de Açúcar stores.Overviewof CSR initiatives in BrazilDynamic, innovative bannersSustainable consumption Organic Thursday The Pão de Açúcar banner haslaunched an Organic Thursdaycampaign to promote its organicallyfarmed products and its Taeq privatelabel in particular, by offeringcustomers a 20% discount. Solidarity“Projeto Arredondar”Minuto Pão de Açúcar has implemented the "ProjetoArredondar" campaign at its stores, which allowscustomers to round up their payment to the nearestreal. The sums collected are donated to charityorganisations focusing on environmental protectionand education. Energy efficiencyMore than 300 stores renovatedThe energy efficiency programme continues to be rolled out.Lighting, air conditioning and commercial refrigeration systemshave been renovated at more than 300 stores in two years. In addition, the largest solar power unit in Brazil’s retailindustry, comprised of 1,140 solar panels, was commissionedon solar canopies covering car parks at the Assaí store inVárzea Grande, in the state of Mato Grosso.Gender equality UN Women Award GPA’s policy to promote gender equality is producing results.Women now represent 25% of management, up from 21% in 2015. GPA’s advances earned it the UN Women Award in 2016.New CaledoniaGuadeloupeMartiniqueSte LucieReunion IslandMauritiusMadagascarSeychellesKuwaitBahrainUAETunisiaLibyaSenegalLebanonAzerbaijanGeorgiaMoldovaIvory CoastGuineaConakryGabonCongoCamerounCentral African RepublicDemocratic Republic of CongoDjiboutiSt-MartinSt-BartsCubaCanadaSt-Pierre& MiquelonDominican RepublicNigerTogoBeninMaliGhanaBurkina FasoGuyanaAndorraPortugalMoroccoLuxembourgRussiaBelgiumSwedenEstoniaLatviaLithuaniaQatarOmanPhilippinesBulgariaHong KongChinaTaiwanSouth KoreaJapanMalaysiaSingaporeIndonesiaThailandCambodiaRomaniaSwitzerlandItalySpain74| 2016 ANNUAL REPORT2016 ANNUAL REPORT|75Business partnershipsPioneering the franchise concept in emerging markets, Casino continued to develop thefootprint of its banners. It also develops private-label supply partnerships in new markets.These collaborations underpin the Group’s expansion in Europe, Africa, the Middle East and Asia.Nearly 260 affiliated stores in 31 countriesTeams dedicated to business partnerships have beencarrying out substantive work for several years to forgepartnerships with retail players in countries where theGroup does not yet have a presence. The first focus ofthis process was to expand the network of affiliatesthrough long-term agreements with powerful localpartners. A total of ten stores were opened in 2016,primarily under convenience formats, part of the Group’sDNA. The number of affiliated stores worldwide reached258 in 2016. With 117 stores operating in North Africaand the Middle East, and 27 more in Sub-Saharan Africa,the Group is broadening and deepening its presence ingeographies with high growth potential. Private labels, the Group’s ambassadorsThe Group has also been expanding the supply of Casinoprivate-label products to leading local retailers. Apartfrom providing access to major markets, thesepartnerships also substantially raise the visibility of allGroup brands, Casino, Casino Délices, Guichard Perrachon,Casino Bio, Doodingues, Tilapins, Ça vient d’ici, Ysiance,Tous les Jours, Monoprix, Monoprix Gourmet, Finlandek,etc. These brands, which represent a sought-after Frenchlifestyle, are resoundingly popular with Asian customers.A number of stores in Southeast Asia feature these itemsin a dedicated corner. New agreements signed in 2016have made Casino products the banner’s leading privatelabel, generating high sales volumes at stores such asMarjane in Morocco and Bravo in Azerbaijan ■FranchisesDevelopment of Casino Mandarine in AbidjanThe Group exports its expertise in the conveniencestore format with the development of a new concept,Casino Mandarine. Two stores were opened in 2016,one of which in Abidjan, Côte d’Ivoire developed withProsuma and another in Yaoundé, Cameroon withMercure International. Addressing a high-end, urbancustomer base, the banner has duplicated the conceptthat has made Franprix so successful in France,featuring a wide, glass street-level façade, flashycolours, carefully designed lighting, a high-end freshproduct assortment, orange juicers, a single checkoutline, and so on. Franprix has also inspired theConvenience Academy in Abidjan, based on theMandarine Academy model, to train future managers.About ten Casino Mandarine stores are set to open in Côte d’Ivoire in 2017.The Group’s business partnerships at 31 December 2016Dynamic, innovative bannersCSR performance78| 2016 ANNUAL REPORT2016 ANNUAL REPORT|79Committed employerCSR performancePromoting diversity and combating discriminationGroup policyAs a major employer in France and in most of its host countries, the Casino Group develops and implements innovativehuman resources and management policies that are sensitive to local cultures. These policies aim to:- promote employees’ professional development and enhance individual talents; - combat discrimination and strengthen equal opportunity;- foster constructive and innovative social dialogue;- protect employees’ health, safety and well-being at work;- implement a fair and progressive compensation and benefits policy.Because it believes that diversity contributes to its business performance, the Casino Group has been active incombating all forms of discrimination since 1993. Casino leads a proactive policy designed to encourage the hiring ofapplicants from a wide range of backgrounds, foster equal opportunity at every level and promote social cohesion.Promoting gender equality in the workplaceWorkplace gender equality is a key commitment for the Group. At every level of the organisation, gender equality issuesimpact gender diversity across job categories, career management, human resources processes (compensation, accessto training, hiring and promotions) and parenthood. The Casino Group held as soon as 2013 the “Workplace EqualityLabel” awarded by Afnor.Highlights in 2016■In 2009, Casino was the firstretailer group to obtain the“Diversity Label” awarded byAfnor to companies pursuing anexemplary policy. Following an audit,the label was renewed in 2016 andextended to Monoprix. ■The first edition of the DiversityTour de Francewas organised in2016. Debates were held in Groupstores, restaurants and warehouses,bringing in managers and employeestogether with Group diversityteams.■In October 2015, the Groupsigned the International LabourOrganization’s Global Businessand Disability Network Charterin order to reaffirm its commitmentto helping disabled people findemployment. The number ofdisabled employees increased 5% on2015 as a result of the Group’sassertive policies, especially in Brazil. ■Casino, which has the equivalentof 13.22% of jobs filled bypeople with disabilities, renewedits agreement on behalf of thedisabled in 2016. Monoprix recruited207 disabled workers between2014 and 2016, surpassing thetarget set in the disabilityagreement by 15%. Cdiscountimplemented an e-learning training course onintegrating disabled persons.■In 2016, the Group adopted theWomen’s EmpowermentPrinciplesbacked by UN Womenand joined forces with France’sNational Committee in signing anagreement to support the actionsand awareness campaigns of thisinternational organisation. ■To combat stereotypes that leadto discrimination, the Groupproduced the “Combatingeveryday sexism” guideinFrance, based on a field survey ofemployees. Its efforts earned it theNo More Clichés award presented bythe organisation Communication &Entreprises, the LSA Diversity andCSR Award and the Diversity Awardfrom Agence Mixité Entreprise.■GPA, winner of the UNWomen Award, held twoWomen’s Forumsattended bysome 200 managers and developedits internal women’s network, “GPAMulheres na liderança”, set up in2014. Increasing the proportion ofwomen in the management team isone of the three CSR performanceobjectives used in determiningvariable compensation.■In 2016, Éxito intensified itsaction to support gender equality:hiring in leadership positions,training for women managers,career management, equal pay, andsupport and awareness measures.Three hundred employeesparticipated in conferences andfocus groups called “Mujeres deÉxito” to discuss best practices.■GPA’s Commitment Charter forthe Promotion of Diversitylaunched in 2015 provides aframework for measures to promotedisabled people, young people andthe LGBT community and wasextended in 2016 to actions takento combat racial discrimination. Alsoduring the year, the “GPA Iguais”programme was set up formanagers as were the “MinuteDiversité” meetings to encouragemanagers to address diversityissues with their teams. Increasingthe number of disabled workers isone of the three quantitative CSRperformance objectives used by GPAin determining variablecompensation.■Assaí, which has implementednumerous employee awareness andtraining initiatives, reported for2016 that 5% of its employeeswere disabled, an outstandingachievement for the retail sector inBrazil.■Éxito rolled out its “Poblaciónvulnerable” integration programmeaimed at people with disabilities,victims of armed conflict and theirfamilies, severely disadvantagedyoung people, and veteransreturning to civilian life.80| 2016 ANNUAL REPORT2016 ANNUAL REPORT|81CSR performance | Committed employerHelping young people enter the workforceEmployees aged under 30 accounted for 39% of the Group’s workforce at 31 December 2016. Casino’s commitmentto young people is mainly reflected through an active policy to promote work-study solutions.■The Group employs 2,400work/study trainees in France.Programmes to facilitate the hiringand integration of work/studytrainees have been introduced in allentities. Casino organised itsWork/Study Dayfor the fifthstraight year in 2016. As every year,a panel of professionals named thewinners of the 2016 BestApprentice Contest during theevent.■To combat stereotypes, the Groupprovides employees with the guide“Do You Look at Young People inthe Right Way?”to encourageintergenerational dialogue. TheGroup also undertakes specificinitiatives to help young people whoare poorly qualified or fromunderprivileged backgrounds. In2016, the Group hired 1,066employees from thesedisadvantaged neighbourhoods aswell as 450 interns and 103work/study programme participants.■The Group has forged manypartnerships to guide youngpeople in entering theworkforce, including with the CivicService Agency, the BusinessNetwork for Equal Opportunity inEducation, the Nos Quartiers ont duTalent association and the Talentsdes Cités competition. Monoprixworks closely with the Second-Chance School, France’s localemployment offices and EPIDE, aFrench government agency for theintegration of young adults in thejob market. Franprix is a partner tothe Étincelles network, which helpsdisadvantaged young people enterthe workforce.■In 2016, Grupo Éxito rolled outthe Colombian Labour Ministry’s40,000 first jobsprogramme,which aims to break down thebarriers to youth employment. ■In Argentina, Libertad leadswork/study and vocational trainingprogrammes in collaboration withschools and universities, and joinedthe Argentinian government’s“Primer Paso y Entrenamientopara el trabajo” programmesdesigned to offer unemployedyouths their first work experience. ■Casino was the first retailer groupto sign in 2016 the City of ParisCharter for Local Employment.The initiative is a success : over theyear, the Casino Group hired 4,360Parisians. Developing employee talentSince its very beginnings, the Casino Group has been committed to providing career growth opportunities for itsemployees and bringing out individual talent, which contributes to its operating performance.■The “Young InternationalTalents” programme aims todevelop the talent of futureinternational managers byenhancing their knowledge ofinternational cultures and relationsbetween entities. Entities in eachcountry use career developmentprogrammes to identify and supportfuture leaders: the “Talent Pool” inFrance, Assaí’s “Accelerate”programme in Brazil and Libertad’s“Pool de Altos Potenciales” inArgentina.■In France, the Group negotiated anew agreement on strategicworkforce planning (SWP) in 2016.Through its in-house trainingorganisation, Casino Campus,nearly 41,600 employees from allbanners benefited from either82| 2016 ANNUAL REPORT2016 ANNUAL REPORT|83CSR performance | Committed employerResponsibleretailerProtecting consumer healthGroup policyFood is a key health issue in today’s society and a fundamental concern for the Group, which addresses it by offeringquality products combining nutritional balance, health, pleasure and respect for the environment.The Group has defined four priorities: - improve consumer health through a more balanced diet;- encourage environmentally responsible and biodiversity friendly consumption;- combat food waste;- step up action to support animal welfare.The first signatory of a Voluntary Code of Commitment to Nutritional Progress in 2008, Casino has a Health Committeemade up of independent experts to analyse scientific trends in the field of health and improve the nutritional value ofprivate label products.Highlights in 2016■To reduce consumers’ exposure topesticides and antibiotics, Casinolaunched the “Agriplus”programmein 2016 to developinnovative agricultural initiativesthat are good for the environment,producers and consumers. The“Agriplus” label has been extendedto new frozen vegetable productsfree of pesticide residues, poultryraised without antibiotics, especiallyfor the Casino Bio and Terre &Saveurs brands, and pork raisedwithout antibiotics. ■The Group offers a number ofproduct ranges to meet the needsof consumers with specialdietary requirements.The“Casino Bien pour Vous !” labeloffers a sugar-free product rangedeveloped with the French DiabetesFederation (FFD) and a gluten-freeproduct range created with theFrench Association of GlutenIntolerance (AFDIAG). The “Taeq”label distributed in Colombia andBrazil also features product rangesadapted to new diets. ■Building on its nutritionalassessment conducted in 2015,Éxito continued optimisingprivate label food products, with39% of its food offering nowmeeting the nutritionalrequirements introduced as a resultof this assessment.Enhancing workplace health and well-beingThe strength of social dialogue plays a major role in building the human resources policies of the Group, which iscommitted to improving the physical and mental health and safety of its employees.■In France, Casino maintainsregular dialogue with therepresentative trade unions andexchanges with 1,000 staffrepresentative bodies and 5,500elected representatives. Anagreement covering socialdialoguewas renewed in 2016.■Every two years, Éxito conducts astudy of 22,000 employees tomeasure the workplaceatmosphere. The entity achieved ascore of 80 in 2016, up from 78.6 in2014, raising the status from“highly satisfactory” to“outstanding”. In Brazil, the survey ofAssaí employees measured theemployee engagement rate at 75%,ranking Assaí among companieswith the highest rates on themarket.■GPA and Éxito implementworkplace accident preventionplans to identify major risks as earlyas possible. In 2016, 941 GPA siteswere assessed for potentialenvironmental, medical and accidentrisks. GPA also organised aprevention week at its stores andwarehouses.■Casino, the first food retailer toreceive the endorsement of theFrench Diabetes Federation for itssugar-free product ranges, heldevents for its employeesin 2016to raise their awareness aboutdiabetes, one of the leading healthissues in France. ■The caring managementpractices awareness programme,designed to increase employeemotivation by limiting workplacestress, was carried forward inFrance. As part of the programme,the workplace well-being expert Dr Philippe Rodet trained 4,200managers, who can further theirknowledge in the area with practicalcontent available on a dedicated e-learning site. The network ofworkplace well-being expertsidentifies employees who might beexperiencing difficulty and directsthem to the people who are bestplaced to help them, whether it bethe occupational physician,management, the HR department, ahelp and assistance service, etc.Finally, a “Caring ManagementPractices” module was included inthe Trade and Retail Mastersprogramme at Jean MonnetUniversity in Saint-Étienne. The first class of Group managersgraduated in 2016.■In 2016, Éxito upheld its “Tiempopara ti” programme to improvework-life balance. More than 12,530 days were used to benefitover 20,300 employees. classroom training or e-learningduring the year. In 2016, Casino alsodeveloped new certificationprogrammes in food services to trainpeople for jobs in the meat, seafoodand pastry fields. ■A number of banners have set upin-house training centres. Tounderpin its new service-drivenstrategy, Franprix trained 1,000employees through its MandarineAcademy in 2016 to develop theirprofessional expertise and customerservice skills. Assaí has a corporateuniversity that offers coursesfocusing on the cash & carrysegment, training 36,000 people in2016. Two schools were set up forÉxito in 2016 to provide bakery andtelephone services training, inaddition to the Surtimax, ÉxitoExpress and Carulla centres.84| 2016 ANNUAL REPORT2016 ANNUAL REPORT|85CSR performance| Responsible retailerEncouraging more sustainable consumptionTo help customers consume more environmentally friendly products, Casino Group stores now offer more than 19,680 products that are certified environmentally responsible, an increase of 13% compared with 2015. Theseproducts account for a growing share of revenue at Group entities.■Group stores sell more than16,100 organically-farmedproducts, including over 14,110 inFrance through the private labelsCasino Bio, Franprix Bio, Leader PriceBio, Monoprix Bio and Naturalia. In2016, the Leader Price Bébé Biorange was launched with 18products covering four age groups.■The Group’s banners offer anumber of product ranges meetingGood Agricultural Practices(GAP) certification, with more than930 products on store shelves in2016. The Group encourages itssuppliers in other countries to applyGAP. For this reason, Éxito put inplace a GAP certificationprogramme, and more than 200fresh products were certified in2016, up 41.5% on 2015.■In 2016, Monoprix launched the“Monoprix Tous Cultiv’acteurs”continuous improvementprogramme, covering some 20 fruitand vegetable products. Thisprogramme aims to bring customershealthy products that taste good,while helping partner producers tomove towards more environmentallyfriendly farming practices andreduce the use of pesticides in ordertoprotect pollinators.■Following on from its long-standing responsible policyregarding palm oil, the Casino Groupcontinued its action to combatdeforestationin 2016 with thenew focus of GPA’s beef purchasingpolicy. The traceability processesguarantee that the supply chain isnot involved in deforestation. A full98% of purchases come fromsuppliers that have signed up to themeat origin inspection programme. ■An advocate of sustainablefishing, the Group is removingendangered species from its storesand supports small-scale fishing. In2016 under its private label,Monoprix launched canned albacoretuna sourced without the use offish aggregating devices andbolstered its coastal fishinginitiative based on practices thatpromote species renewal. Casinosells canned albacore tuna caughtby pole and line fishing, a methodregarded as more sustainable fortuna fish populations.■Casino promotes local productsthrough its “Le meilleur d’ici”concept, which supports 1,500 localsuppliers located within 80 km ofthe store. Monoprix carries a “Madein pas très loin” range of productsmade within 100 km of the store,representing nearly 1,500 items ofwhich 20% are available exclusivelyat the banner. ■In Brazil, a corporatecommunication campaign waslaunched in 2016 featuring severalhealthy, easy-to-make recipes usingnutritious ingredients. GPA’sresponsible food truckoffersfree cooking workshops and recipesdeveloped by nutritionists topromote a healthy andenvironmentally friendly diet. A total of 2,300 people have takenpart in these workshops.The Group offers 20,000 certified sustainable references86| 2016 ANNUAL REPORT2016 ANNUAL REPORT|8786| 2016 ANNUAL REPORT2016 ANNUAL REPORT|87CSR performance| Responsible retailerTrusted partnerImplementing ethical social complianceGroup policyThe Casino Group rolls out a policy designed to monitor and improve the social and environmental impacts of itssupply chain. This policy is structured with three key priorities: - implementing a social ethics programme for suppliers of its private label products; - offering guidance for supplier CSR programmes;- supporting local production channels.Since 2002, suppliers have been encouraged to participate in a social ethics programme that aims to monitor andimprove the conditions in which workers are employed to manufacture the Group’s private label products.Highlights in 2016■The Group’s Supplier EthicsCharterdefines the rules applicableto the supply chain. The Chartercovers unlawful trading practices,anti-corruption policy, human rights,environmental protection, animalwelfare and the Five Freedoms ofAnimal Welfare as defined by theWorld Organisation for AnimalHealth. ■Every year, more than 300production sites are audited byindependent firms to checkcompliance with the requirementsset out by the Supplier EthicsCharter. The social auditsareimplemented first in factories whichmanufacture high-risk products andare based in countries considered asmost likely to present risks ofviolation of human rights andworking standards. Regular auditsare carried out in China, India andBangladesh. The Group is a memberof France’s Initiative Clause Socialeand supports the BangladeshAccord on Fire and Building Safety.■In addition to these auditprogrammes, subsidiaries aredrawing up audit proceduresforlocal suppliers. GPA is active in theBrazilian initiative “AssociaçãoBrasileira do Varejo Têxtil”(ABVTEX), an organisation thatbrings together all retailers in theBrazilian textile industry to certifytextile suppliers and sub-contractorsbased on 18 criteria for ethicalconduct. Éxito drafted a SupplierCode of Conduct that includesethical, transparency and goodgovernance requirements and wassigned by more than 440 suppliersin 2016.Combating food wasteThe Casino Group implements an active policy to reduce food waste. It optimises store operations to reduce breakageand offers deals on products with short expiry dates.■Banners develop programmes to donate products with shortexpiry datesto charityorganisations and form partnershipswith organisations active in thesocial and solidarity economy, suchas Phénix (Franprix, Casinosupermarkets) and Eqosphère(Leader Price). ■The banners provide tools to raisethe awareness of customers andemployees in their stores such as“Great ways to reduce waste” and“Waste Prevention Tips” atMonoprix, and the “Combating FoodWaste” booklet at Casino banners. ■Monoprix develops the processingof damaged produce. The bannerhas partnered with Re-Belle craftjams made using over-ripe ordamaged fruit collected from itsstores. ■In Brazil, GPA launched a zerowaste campaign to encouragestores to reduce food waste, andAssaí reports on waste recycling andcomposting.Respecting animal welfareThe Group has implemented an enhanced programme in France to inspect animal farming and slaughter conditionsand, in partnership with its suppliers, develops product ranges that meet strict specifications. Significant steps havebeen taken across three production channels: eggs, meat and dairy.■In 2013, Monoprix was the firstretailer to remove from sale eggsfrom caged hensunder its privatelabel and replace them with free-range or organic eggs. In April 2016,Monoprix went a step further byremoving from sale all eggs fromcaged hens, across all brands. Thebanner received an award fromCompassion in World Farming (CIWF)for its efforts. Franprix, Leader Priceand Casino stores have each sincemade the commitment to stopselling eggs from caged hens intheir stores by 2020. In Brazil, GPAhas committed to removing eggsfrom caged hens from sale by 2025across its own brands, in line withthe public health regulations andrequirements set out by theBrazilian Minister for Agriculture.■Since 2014, Monoprix hasselected French farms that complywith the Charter for GoodAgricultural Practices. Its action toimprove welfare standards fordairy cowshas earned it the “GoodDairy Commendation” from CIWF.Casino supports the “Lait deséleveurs du Monts du Forez” group,which offers the best possiblefarming conditions, while Franprixsells Cant’Avey’Lot milk under the“Lait de la vallée du Lot” brand.■In 2000, Casino included animalwelfare principles in the guidelinesfor its Terre & Saveurs meat range,which was broadened to includeanimal slaughter procedures in2013. Since 2015, independentveterinarians have conductedaudits of slaughterhousesthatsupply meat to the Casino andMonoprix banners. These auditscheck staff training, animaltransport conditions and thepermanent presence of an animalprotection professional at thefacility. 88| 2016 ANNUAL REPORT2016 ANNUAL REPORT|89CSR performance| Trusted partnerSupporting local production channelsWith strong roots in the regions where it is present, the Group has close relations with local small businesses and theagricultural sector. It has taken several steps to support small producers, cooperatives and farmers.■In 2016, Casino and the Frenchsmall business association (FEEF)signed a charter to set up aframework to promote businessrelations with local SMEs, vectors ofregional economic vitality. TheGroup notably appointed an SMErepresentative to streamlinerelations with the purchasing huband a mediator to handle commercialdisputes.■The Group works to promote thedevelopment of the animal farmingindustry. It teams up with producers,cooperatives and agriculturalsectors and recently sealed anumber oflong termpartnerships. With the Altitudecooperative and Covial, Casinolaunched a sourcing channel forheifers raised at higher elevations atsome 50 traditional farms in theMassif Central in the middle ofsouthern France. With the Unicorcooperative, Casino develops asourcing channel for lambs raised inthe Aveyron and surroundingdepartments in central southernFrance. The Group also worked withArcadie Sud-Ouest to set up asourcing channel for “Label Rouge”pork raised in south-western France,along with a heifer sourcing channel.These partnerships have led tomulti-year agreements based onstable purchasing volumes andprices derived from actualproduction costs. ■In Colombia, Éxito supportslocal producersby developingpartnerships with NGOs such as theClinton Foundation. Small producersbenefit from a support programme –technical assistance, productivityimprovements, deliverymanagement – and a pledge to buytheir products at an optimised priceto contribute to local social andeconomic development. Agriculturalproducts come from 21 regions and756 Colombian producers. Lastly,Éxito continues to roll out itstraining programme for its suppliersin partnership with EAFIT University:more than 500 suppliers havebenefited from companymanagement training as part of thisprogramme. ■In Brazil, GPA continues todevelop the “Caras do Brasil”programme that gives craftcooperatives the opportunity to selltheir products at Pão de Açúcarstores. Social and environmentalcriteria are taken into account in theproducer selection process.Meanwhile, the “Quality from thesource” programme involves fruit,vegetable and egg suppliers in orderto control pesticide use, producttransport and storage conditionsupstream of the supply chain. 90| 2016 ANNUAL REPORT2016 ANNUAL REPORT|9190| 2016 ANNUAL REPORT2016 ANNUAL REPORT|91CSR performanceEnvironmentally committedgroupReducing greenhouse gas emissionsGroup policyAs a United Nations Global Compact signatory, Casino has long been active in an improvement plan to fight climatechange, reduce pollution and protect natural resources and biodiversity.The banners’ environmental priorities are:- reducing greenhouse gas (GHG) emissions;- improving energy efficiency;- reducing and recovering waste.In 2012, the Casino Group pledged to reduce its emissions per square metre of retail space by 20% by 2020 (scopes 1 and 2). To achieve that target, it rolls out action plans covering transport, energy consumption and the impact of refrigerants.Highlights in 2016■The Group makes it a priority toreduce fugitive emissions fromrefrigeration and freezer units.This involves improving theairtightness of existing equipmentto limit leaks and using ozone-neutral refrigerants with reducedglobal-warming potential. About 30stores have new hybrid equipmentthat use a refrigeration circuitcharged with synthetic refrigerantsfor positive cold production and acircuit charged with naturalrefrigerants (CO2or propane) fornegative cold production. Thissystem halves stores’ initial chargeof synthetic refrigerants with highglobal-warming potential. Monoprixand Casino supermarkets have beentesting equipment that uses onlynatural refrigerants to meet all theirrefrigeration requirements.■To limit its GHG emissions andreduce pollution from goodstransport in city centres, Casinomakes 97% of its city deliveriesusing vehicles that comply with thelatest standards (Euro 5 and 6). In2016, its logistics subsidiary Easydisannounced that it would roll outbetween now and 2020 a fleet of400 vehicles running oncompressed natural gas(CNG) orliquefied natural gas (LNG) for longdistances. These vehicles are moresilent and reduce fine particulateemissions by 85%. Monoprixpledged to triple the number ofCNG-powered trucks by 2017. Inaddition, both Monoprix and Casinoare testing trucks that run onImproving energy efficiencyBy improving the energy efficiency of stores, the Group reduces their electricity consumption and its indirect impacton greenhouse gas emissions. It continues working towards its target to reduce its electricity consumption per squaremetre of retail space by 20% between 2012 and 2020.■Reducing energy consumption isaddressed through a continuousimprovement process, which isbased on carrying out energy auditsfor sites, monitoring consumption,and implementing an energyrenovation programme. More than800 Géant and Monoprix stores andCasino supermarkets are covered byEnergy Performance Contracts(EPCs).■Commercial refrigeration systemsare one of the biggest sources ofenergy consumption within theGroup, which is well on the way tomeeting its commitment toinstalling doors on 75% of itsrefrigeration and freezer unitsby 2020. 100% of Géanthypermarkets, 80% of Casinosupermarkets and 43% of Monoprixstores were equipped in 2016, alongwith 100% of new Franprix andCasino Shop stores. ■In Brazil, the 140 GPAhypermarkets and 182supermarkets underwent energyrenovation workin 2015 and2016 to switch to LED lighting andimprove air conditioning andcommercial refrigeration systems. InColombia, Éxito develops naturallighting, fits stores with LED tubelights and is standardising theinstallation of smart meters. ■Renewable energy generationcontinues to be developed at Groupsites with the installation of solarpower generation units on roofs andsolar canopies at hypermarket carparks. In Colombia, two photovoltaicsystems were rolled out in 2016;the one in Barranquilla is the largestin the country. In 2016, 60installations were in operation,representing a solar panel surface of458,480 sq.m.■Energy efficiency is one of thecriteria applied in theenvironmental certification ofbuildings. In France, 30% ofshopping centres are certifiedOutstanding under the BREEAM In-Use standard. Grupo Éxito wasawarded LEED Silver certification ontwo occasions for the Éxito store inCundinamarca and LEED Gold for theViva de Riohacha shopping centre.Three Pão de Açúcar stores werealso LEED-certified. renewable bioCNG, which couldreduce transport-related GHG by90%.■Franprix is a pioneer inalternative modes of transport,especially through the use of inlandwaterways. In 2016, the bannerincreased by 42% the proportion ofgoods delivered to stores withinParis’s city limits by boat via theSeine River.■GPA maintains its backhaulingprogramme and has been testingthe use of double-decker trailers toincrease delivery loadsandreduce mileage when delivering to stores.92| 2016 ANNUAL REPORTCSR performance| Environmentally committed groupRecovering wasteThe main waste generated by stores is cardboard, plastic, paper and organic waste. The Group aims to reduce wasteand increase recovery rates by supporting the development and sustainability of local recycling networks.■In 2016, more than 217,000tonnes of waste was recovered– cardboard, paper, plastic andorganic waste – thanks to processesimplemented at Group stores.Recycling cardboard, paper andplastic cut CO2by more than 33,000 tonnes.■In Brazil, large-scale wastesorting is developing at GPAbanners: 553 stores sort theircardboard and 279 sort their organicwaste for composting. Thirty storesextended waste sorting to newmaterials such as glass and someplastics.■Éxito has strengthened its wastemanagement policy by appointingenvironment representatives atstores who are responsible forraising employee awareness. In2016, 33,000 tonnes of operationalwaste was recycled. The bannertook part in the nation-wide“Limpiemos Colombia” campaignaimed at raising public awarenessabout waste recycling. ■To promote the emergence of acircular economy in which usedproducts serve as raw materials, theCasino Group provides in-storecollection pointsin France, Brazil,Colombia and Argentina where itscustomers can return their usedproducts. In 2016, consumersreturned 19,000 tonnes of products(batteries, light bulbs, electrical andelectronic waste, etc.), which werethen given to accredited serviceproviders for recycling.2016 ANNUAL REPORT|932016 ANNUAL REPORT|95Local corporate citizenFood donationsGroup policyWith strong roots in regional communities, the Casino Group has a positive impact on local economic development,solidarity and efforts to fight poverty and exclusion. It takes action through:- food donations; - its four corporate foundations;- partnerships with public interest organisations.The Group encourages its banners to work actively with food banks, with more than 16,100 tonnes of productsdonated in 2016.Highlights in 2016■In France, the Group is committedto helping the most disadvantagedmembers of society through apartnership with the FrenchFederation of Food Banks, whichwas rolled over in 2016 to boost theinvolvement of stores in weeklyrecovery operations and the foodbank national collection day. In2016, 10,557 tonnes of productswere collected from Group banners(Casino, Monoprix group, Franprix,Leader Price, Vindémia) and 1,466 tonnes were collected from customers.■GPA organised its fourth annual“Dia de Solidariedade” to supportnon-profit organisations such asAmigos do Bem. This food drivecollected 859 tonnes of fooddonations from more than 1,800participating stores with the help of11,000 volunteers. ■In Colombia, Grupo Éxitocontinued its partnership withColombian food banksandcollected more than 1,900 tonnesof goods in 2016. It also supports aprogramme to recover agriculturalsurplus from rural areas. 94| 2016 ANNUAL REPORTCSR performanceRole of Group foundationsGroup foundations structure and coordinate the outreach initiatives led by banners and their employees, with a focuson children’s aid.■ The Casino CorporateFoundationworks to prevent theexclusion of children by educatingthem through theatre. Its “Artistes àl’école” programme has providedaround 2,000 children with backingfor a two-year artistic educationcurriculum. The graduating classpresented its final creation project inJune 2016 at a special eveningevent held at the Théâtre del’Odéon in Paris. In addition, the“Parrains engagés” programmesupports charitable projects aimingto teach children through drama,with Group employees volunteeringas sponsors. ■ Another initiative spearheaded bythe Casino Corporate Foundationgot Group employees involved in theSupporting public interest organisationsTo support local organisations, Group banners develop outreach initiatives involving employees, customers andsuppliers.■Initiated in Franprix storesthrough its partnership with thesocially engaged organisationmicroDon, the “Arrondi en caisse”programme gives customers theopportunity to round up theirpayment to the next euro. The fullextra amount is donated to a localorganisation. The programme wasrolled out in Naturalia stores in2016, and the Brazilian conveniencebanner Minuto Pão de Açúcarimplemented its local equivalent,“Projeto Arredondar”. MicroDon cardcampaigns were also led at morethan 100 Monoprix stores in 2016to support humanitarianorganisations. ■Cdiscountled a “junk removal”campaign to donate furniture andhome appliances to the charityorganisation Emmaüs and maintainsits partnership with Ateliers dubocage, a company in the Emmaüsnetwork that promotes socialintegration. The banner alsoorganised a toy drive forhospitalised children, Flying Santa,at the Bordeaux university hospital.A digital catalogue was speciallydeveloped for the campaign, andpackages were delivered by drone. ■Libertad’s outreach programme“Donemos sonrisas” supports localchildren’s aid initiatives through in-store collections. Some tenorganisations receive funding everyyear. ■Co-branding campaignscarriedout with suppliers also providefunding for outreach organisations.In 2016, the Casino Group andDanone joined forces with theorganisation Sport dans la Ville tohelp 1,000 young women from low-income neighbourhoods to find jobs.A campaign was also organised withPepsico in Casino, Monoprix andFranprix stores to support theAndes social and solidarity stores.2016 ANNUAL REPORT|97“Tous en scène” outreachprogramme launched at 5,500 sitesin France. The event raised moneyto develop new theatre projects forchildren with little access to culture.■ In 2016, the Casino CorporateFoundation also launched avolunteering promotionprogramme.A catalogue of volunteeropportunities to work with 30 partner organisations is availablefor employees on a dedicatedwebsite. ■ Instituto GPAdevelopseducational programmes fordisadvantaged children. It supportsthe “Núcleo Avançado emTecnologia de Alimentos” (NATA)professional training centre wheremore than 300 students can betrained for jobs in the baking anddairy sectors. Instituto GPA isregarded for its “Musica &Orquestra” programme, whichprovides young people with twoyears of music training. Theorchestra performs in stores as wellas in theatres and at festivals inBrazil and abroad. In 15 years, morethan 13,000 disadvantaged childrenhave been trained under theprogramme. Lastly, Instituto GPA iscontinuing its partnership with theGetulio Vargas Foundation to deploythe “Prosperar” programme, whichgrants merit-based scholarships andcurrently benefits 30 students.■ An established partner of theColombian public authorities, theÉxito Foundationis involved incombating child malnutritionthrough its “Gen Cero” programme.Its objective for 2030 is to ensurethat no Colombian child under fivesuffers from malnutrition. In 2016,39,000 children were aided throughthis action. Éxito was also a drivingforce in developing the earlychildhood protection law inColombia.■ The Monoprix Foundationisinvolved in combating isolation incities. More than 20 charity projectswere funded in 2016. TheFoundation formed a partnershipwith Unis-Cité to support the“Intergénéreux” programme toprotect the elderly from socialisolation. Solidarity week gave morethan 720 employees the chance toparticipate in a clothing and toydrive.CSR performance| Local corporate citizen96| 2016 ANNUAL REPORTKey2016 CSR performance indicators98| 2016 ANNUAL REPORT2016 ANNUAL REPORT|99Committed employerDIVERSITY77% of the consolidated workforce isbased in France and Brazil.Consolidated workforce by country(1)Reflecting its commitment to bringingyoung people into the job market,Casino has more than 88,400employees under the age of 30.Workforce by type of employment contract (permanent/fixed-term)(1)A large majority of Casino Groupemployees (93%) have permanentwork contracts.Representation of women in the consolidated workforce and in management by country(1)Employees with recognised disabilities by country(1)Most Casino Group employees (85%)work full time.The gender diversity of our teams isbeing enhanced by pro-active policiesaddressing the full range of workplaceequality issues, including genderdiversity across job categories, careermanagement services for women,fairness in human resources processes(compensation, training, hiring andpromotions) and parenthood.In 2016, the Group adopted the Women’sEmpowerment Principles backed by UNWomen.The number of disabled employeesincreased by 27% compared with 2014as a result of programmesimplemented over the last severalyears in France and abroad. Brazilincreased the number of disabledemployees in its workforce by 16%compared with 2015.France(2)Consolidated workforce by age(1)92%8%Brazil98%2%Colombia86%14%Other(2)88%12%Group93%7%France(2)74%26%Brazil95%5%Colombia81%19%Other(2)76%24%Group85%15%44%33%18%5%14%39%47%France(2)ColombiaOther(3)BrazilFrance(2)ColombiaOther(3)BrazilWorkforce under the age of 30Workforce aged 30 to 50Workforce over the age of 50Workforce by full-time/part-time employment(1)% of employees inpermanent employment% of employees in fixed-term employment% of the workforce in full-time employment% of the workforce in part-time employment3%1%59%37%(1)Total workforce under permanent or fixed-term contracts at 31 December 2016. (2)France: Casino, Franprix, Leader Price, Monoprix, Cdiscount and Vindémia. (3)Libertad (Argentina) and Disco Devoto (Uruguay).(1)Total workforce under permanent or fixed-term contracts at 31 December 2016. (2)France: Casino, Franprix, Leader Price, Monoprix, Cdiscount and Vindémia. (3)Libertad (Argentina) and Disco Devoto (Uruguay).% of female managers% of female employeesBrazilOther(2)40%58%29%49%37%53%28%52%23%54%France(2)ColombiaGroup100| 2016 ANNUAL REPORT2016 ANNUAL REPORT|101Environmentally committed group(1)France: Casino, Franprix, Leader Price, Monoprix, Cdiscount and Vindémia.(2)Libertad (Argentina) and Disco Devoto (Uruguay).* includes transport of goods under operational control for the logistics segment between warehouses and stores.The breakdown of direct (Scope 1) andindirect (Scope 2) emissions issubstantively proportional to theselling area in each country. In 2016, the absolute value of Scope 1 and Scope 2 emissionsdecreased by 14%. This decrease wasachieved thanks to stores reducingtheir Scope 1 emissions by 16.8% andtheir Scope 2 emissions by 2.8%.Overall, carbon intensity per squaremetre of selling area fell by 7.6%. In 2016, Casino's emissions profilechanged significantly due to the disposalof its operations in Asia, which used highcarbon-emitting power sources. Scope 1accounts for 77% of total Scope 1 and 2emissions.In 2016, electricity used by the Group persquare metre of selling area was down by 4.8%. This improvement was made possible bythe roll-out of energy performancecontracts in all countries and theimplementation of an energy managementsystem that complies with ISO 50001. Brazil achieved the most significant drop (7.5%) in energy use thanks to the full-year impact of energy renovations that began in 2015.Other(2)ColombiaBrazilFrance(1)Group20162015201620152016201520162015201620154002006008001,0001,2001,4000Key 2016 CSR performance indicatorsScope 1 and Scope 2 greenhouse gas (GHG) emissions by countryScope 1 and Scope 2 greenhouse gas (GHG) emissions by originChange in energy efficiency by Group operating unit, 2015-2016, in kWh/sq.mChange in Scope 1 and Scope 2 greenhouse gas emissions in absolute value by countryFrance(1)ColombiaOther(2)BrazilRefrigerantsScope 1Scope 2ElectricityHeating oilVehicle fuelFuel for transport of goods*GHG emissions, Scope 1GHG emissions, Scope 233%41%70%23%5%1%1%19%7%Thousands of tonnes of CO2equivalentCasinoMonoprixFranprixLeaderPriceVindémiaGPAÉxitoDiscoDevotoLibertadGroup2016201520144002006008001,0001,2000kWh/sq.m201620152014201620152014201620152014201620152014201620152014201620152014201620152014201620152014470533636736711484856765577102| 2016 ANNUAL REPORT2016 ANNUAL REPORT|103Environmentally committed groupThe amount of waste sorted by thestores for recovery and reuse issteadily increasing. In 2016, the quantity of wasterecovered and reused across all Groupfacilities was up by 5.7%, primarilythanks to the sorting of biodegradablewaste for composting ormethanisation.Key 2016 CSR performance indicatorsAmount of waste recovered and reused, 2015-2016ICS social audits performed by countryResponsible retailerCasino Group stores now carry more than19,680 products certified as sustainable, anincrease of 13% over 2015.In particular, a wide range of organicproducts are available, with more than16,100 items on store shelves across theGroup.In France, more than 14,110 AB-certifiedorganic products (excluding apparel) are onoffer, of which over 1,940 under bannerbrands. In addition, our banners outside France sellclose to 2,000 organic products, of which80% at GPA. In 2016, a total of 900 social audits werevalidated in accordance with ICSmethodology, of which 68% were leddirectly by the Group and the rest by otherICS members at shared supplier plants. In 2016, of the 349 directly-led audits, 79%were initial audits and 21% were follow-ups.Of the audited manufacturers, 62% werebased in China, 8% in Bangladesh and 5% inIndia.In light of the special circumstances inBangladesh, all of the local tier-one plantsworking for our private-label brands wereaudited during the year. Other(2)ColombiaBrazilFrance(1)Group2016201520162015201620152016201520162015100,00050,000150,000200,000250,0000tonnes of waste recovered and reusedOtherCardboard(1)France: Casino, Franprix, Leader Price, Monoprix, Cdiscount and Vindémia.(2)Libertad (Argentina) and Disco Devoto (Uruguay).ChinaBangladeshIndiaOther16,5482,30037646162%8%5%25%PROMOTING RESPONSIBLE CONSUMPTIONNumber of national-brand and private-label products certified as sustainable(1)(1)Organically farmed products (excluding organic-cotton apparel), fair trade products, andproducts bearing MSC, FSC, NF Environnement, PEFC, European Ecolabel and ECOCERTlabelling.(2)Products sold by Casino, Monoprix/Naturalia, Franprix and Leader Price. (3)Products sold by Libertad (Argentina) and Disco Devoto (Uruguay).France(2)BrazilColombiaOther(3)104| 2016 ANNUAL REPORT2016 ANNUAL REPORT|105Principles and reportingscope of non-financial informationKey 2016 CSR performance indicatorsInformation on the Casino Group’s corporate social responsibility process and its environmental, human resources andsocial performance has been prepared in accordance with the principles set out in the Group’s CSR reporting protocol,and distributed to everyone involved in the reporting process in France and in the international subsidiaries. The humanresources, social and environmental data presented are aligned with financial reporting and, unless stated otherwise,cover all business activities under the operational control of the Casino Group or its major subsidiaries in France andabroad. Data concerning affiliates, franchises and business leases are not included. Reporting is on a fully consolidatedbasis (data included at 100%). “The Group” includes the consolidated data of French and international business units. These data exclude operationsdiscontinued in 2016 in application of IFRS 5, i.e., Viavarejo and Cnova Brazil.Information on the Casino Group’s corporate social responsibility process is also available on the corporate website (www.groupe-casino.fr) and in the 2016 Registration Document, which provides additional information about CSR performance and initiatives, as well as about the governance system and methods and principles applied.The Registration Document includes the report issued by the Statutory Auditors based on their 2016 review of theCompany's CSR information. Monoprix, Cdiscount, Vindémia, GPA, Grupo Éxito and Libertad each publish CSR informationin their management reports or on their websites. The Group, as well as its subsidiaries Libertad, GPA and Éxito, aresignatories of the United Nations Global Compact, and each publish a Communication on Progress report every year.UN Global Compact cross-reference tableThe Casino Group signed the United Nations Global Compact in 2009, thereby embracing its ten fundamental principlesconcerning human rights, labour, the environment and the fight against corruption.UNITED NATIONS GLOBAL COMPACT PRINCIPLESHuman Rights1.Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence. 2.Make sure that they are not complicit in human rights abuses.Labour3.Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.4.The elimination of all forms of forced and compulsory labour.5.The effective abolition of child labour.6.The elimination of discrimination in respect of employment and occupation.Environment7. Businesses should support a precautionary approach to environmental challenges.8.Undertake initiatives to promote greater environmental responsibility.9. Encourage the development and diffusion of environmentally friendly technologies.Anti-corruption10.Businesses should work against corruption in all its forms, including extortion and bribery.78 to 82, 87, 89,94 to 9787, 103 8287, 103106 to 11053, 63, 73, 78, 7998, 9990 to 92, 100 to 10252, 53, 83 to 86, 90 to 92, 100 to 10241, 62, 63, 72, 73,90 to 92, 100 to 10287Pages2016 CSR indicators106| 2016 ANNUAL REPORT2016 ANNUAL REPORT|107(*) Employees: Excluding leased and franchised stores.(**) Private label and national brand products derived from organic farming (excluding organic-cotton apparel), fair trade products and products bearingMSC, FSC, NF Environnement, PEFC, EU Ecolabel or ECOCERT labelling. (***) Vindémia data include operations located on Reunion Island, i.e., 99.5% of the entity’s revenue. The Group waste recovery rate covers 91% of Grouprevenue. Group water data cover 97% of Group revenue. Note: Group data exclude discontinued operations in application of IFRS 5, i.e., Viavarejo and Cnova Brazil.Committed employerNumber of employees at 31 December 2016(*)Number227,84236,3641,53021,86810,0734,631100,52341,6147,9923,247Women%53%58%43%62%51%50%52%49%56%47%Men%47%42%57%38%49%50%48%51%44%53%Under 30 years old %39%20%29%34%28%29%45%47%46%24%30 to 50 years old%47%47%64%43%56%57%47%46%42%74%Over 50 years old%14%32%7%23%16%13%9%7%12%2%Under permanent contracts%93%92%92%92%90%88%98%86%84%98%Full-time %85%72%97%71%76%86%95%81%84%56%Percentage of female managers%37%34%38%52%32%37%28%29%28%17%Disabled employees at 31 December 2016Number7,1343,06343871119992,6602242926People hired under permanent contracts during the year Number45,7693,5612315,24998830527,3566,1881,774117People under the age of 26 hired under permanent and fixed-term contractsNumber57,8349,9481549,8192,33687815,33216,8152,295257Workplace accidents with at least one day of lost timeNumber7,9611,9586911819032111,2201,653594172Annual turnover of employees under permanent contracts%22%13%11%24%15%7%28%21%18%7%Training hours per personHours186165551548415Employees under permanent contracts promotedNumber13,118430476948481294,7334,7051,49042Meetings with employee representatives during the year Number22,68912,8871035,06868162135070244360Responsible Retailer and Trusted Partner productsProducts certified as “responsible”(**)Number19,6842,12777111,6099741 0672,29937639467Organic national-brand and private-label products (excluding apparel)Number16,1071,910310,6547647871,60920311067Environmentally committed group(***)GHG emissions, Scope 1t CO21,122,767288,3655,05491,69679,52417,800370,035199,52140,03430,738GHG emissions, Scope 2t CO2334,60549,75245719,29115,58033,215102,34377,4135,50231,051Electricity consumptionTotal MWh3,292,576879,8388,168313,024275,96146,8471,176,361439,84967,92184,608Electricity/sq.m of selling areakWh/sq.m577470-533636736711484856765Water consumptioncu.m5,397,209877,46016,751237,150174,19533,4512,007,9461,558,765207,144284,347Volume of operating waste recycled and reusedtonnes217,30877,3651,93827,57322,023-47,56733,6165,1562,070Waste recovery rate%47%64%77%57%62%-27%---Local corporate citizenFunds distributed for community outreach (donations and foundations)€76,419,96816,442,693133,88116,513,1386,852,9472,228,27515,589,27617,993,049453,811212,898Estimated number of people reached through foundations or outreach partnershipsNumber96,05755,000---1462,08838,823--FranceBrazilColombiaUruguayArgentinaUnit GroupCasinoCdiscountMonoprixFranprixVindémiaGPAÉxitoDisco Libertad SALeader Price DevotoFinancial performance and governance110| 2016 ANNUAL REPORT2016 ANNUAL REPORT|111The Board of DirectorsFollowing the Annual General Meeting of 5 May 2017(1), the Board of Directors will continue to be comprised of 12 members:Jean-Charles Naouri Chairman and Chief Executive Officer. Nathalie Andrieux Independent Company Director. Independent Director. Diane Coliche Permanent representative of Matignon-Diderot;Chief Financial Officer of Monoprix. Jacques Dumas Representative of Euris; Adviser to the Chairman of Casino; Deputy Chief Executive Officer of Euris. Christiane Féral-Schuhl Lawyer.Independent Director. Lady Sylvia JayIndependent Company Director. Independent Director. Didier Levêque Representative of Finatis;Corporate Secretary of Euris and Chairman and Chief Executive Officer of Finatis. Catherine Lucet Chief Executive Officer of the Education and Reference division of Editis.Independent Director. Gérald de RoquemaurelLegal Manager of BGR Partners.Independent Director. David de RothschildLegal Manager of Rothschild et Cie Banque and Managing Partner of Rothschild et Cie.Frédéric Saint-GeoursChairman of the Supervisory Board of SNCF. Senior Independent Director. Michel SavartRepresentative of Foncière Euris; Advisor to the Chairman of the Rallye/Casino Groupand Chairman and Chief Executive Officer of Foncière Euris. Henri Giscard d’Estaing Chairman of Club Med. Non-Voting Director.Gilles PinoncélyCompany Director.Non-Voting Director.Kareen CeintreSecretary of the Board of Directors.1Subject to the election or re-election of the proposed candidates.Directors are elected for a term of three years. In accordance with the Company’s Articles ofAssociation and the Afep-Medef Corporate Governance Code for French listed companies,the Board is re-elected in part each year on a rotation basis. The terms of the followingdirectors are therefore expiring at the Annual General Meeting of 5 May 2017: Gérald deRoquemaurel, David de Rothschild, Frédéric Saint-Geours, Euris and Foncière Euris.The Board of Directors seeks to ensure that its membership is aligned with the principles ofthe Afep-Medef Corporate Governance Code. With the assistance of its specialisedcommittees, the Board periodically assesses its size, structure and composition as well asthat of its committees. Directors are selected for their experience, skills and readiness to beinvolved in the Group's development. The Appointments and Compensation Committee is responsible for proposing candidates for election or re-election to the Board. The aim isto maintain a diverse and complementary range of skills and experience on the Board andto achieve a balanced representation of men and women. Based on the Governance Committee's assessment, the Board of Directors has decided thatits present size is appropriate. In accordance with the recommendation of the Appointmentsand Compensation Committee, it has therefore submitted a number of related resolutionsto the Annual General Meeting of 5 May 2017. It recommends that shareholders re-electfor a three-year term Gérald de Roquemaurel, David de Rothschild and Frédéric Saint-Geoursas well as Euris and Foncière Euris, represented respectively by Jacques Dumas and MichelSavart. On the recommendation of the Appointments and Compensation Committee, it alsoOrganisation and procedures of the Board of DirectorsThe rules governing the organisation and procedures of the Board of Directors aredefined by law, the Company’s Articles of Association and the Board's Charter. Theyare presented in detail in the Chairman’s Report and in the 2016 RegistrationDocument filed with the French securities regulator, the Autorité des MarchésFinanciers (AMF).112| 2016 ANNUAL REPORT2016 ANNUAL REPORT|113recommends that shareholders elect a new independent director to replace Cobivia,Christiane Féral-Schuhl, who is a lawyer and member of the Paris and Quebec bars and aformer Chair of the Paris Bar (2012-2013). Her profile complements the experience andexpertise of the current Board members. As part of its delegated responsibilities, the Appointments and Compensation Committeeconducted its annual review of the independence of each of the directors comprising theBoard as submitted for the approval of the 5 May 2017 Annual General Meeting (if all theresolutions are approved). Six of the Board members were deemed to be independent: Nathalie Andrieux, Sylvia Jay,Catherine Lucet, Gérald de Roquemaurel and Frédéric Saint-Geours. Christiane Féral-Schuhlalso meets all the criteria of the Afep-Medef Corporate Governance Code. On shareholder approval, the Board would also include a qualified non-independent individualfrom outside the Company, David de Rothschild, and the controlling shareholder would berepresented by five directors – Jean-Charles Naouri, Chairman and Chief Executive Officer,Jacques Dumas, Didier Lévêque, Michel Savart and Diane Coliche.Following the Annual General Meeting of 5 May 2017, the Board would therefore comprise12 members, of which six independent directors (50%) and five women (42%). Having consulted the Governance Committee and the Appointments and CompensationCommittee, the Board has also decided to include an employee representative among itsmembers, in accordance with the provisions of French Act 2015-994 of 17 August 2015on social dialogue and employment. The amendments to the Articles of Associationnecessary to provide for employee representation on the Board have been submitted to the Annual General Meeting of 5 May 2017. Subject to their approval, an employeerepresentative will be elected within six months of the Annual General Meeting. Inaccordance with the Afep- Medef Corporate Governance Code, this director will not be takeninto account when calculating the percentage of independent directors and genderrepresentation on the Board.In 2012, following a proposal by the Chairman and in accordance with AMF recommendationsand shareholder proxy advisors, the Board of Directors appointed a Senior IndependentDirector in order to ensure that the principles of good governance are upheld in the exerciseof the combined roles of Chairman and Chief Executive Officer. In the formal assessment of the Board’s procedures, which was conducted by an externalfirm in 2016, the Directors' ratings and comments once again indicated that they weresatisfied with the Board's organisation and procedures, both from an ethical standpoint andin terms of corporate governance principles. The Board of Directors met 11 times in 2016, with an average attendance rate of 85.3%. The Board of Directors is therefore now assisted by three specialised committees: the AuditCommittee, the Appointments and Compensation Committee and, since 7 July 2015, theGovernance Committee. The Chairman and Chief Executive Officer does not sit on anycommittee. AUDIT COMMITTEE The Audit Committee is currently comprised of three independent members: Catherine Lucet,Frédéric Saint-Geours and Gérald de Roquemaurel. Catherine Lucet is the Committee Chair. All members of the Audit Committee hold or have held senior executive positions andtherefore have the financial or accounting skills required by Article L. 823-19 of the FrenchOrganisation and procedures of the Board of DirectorsBoard CommitteesIn 2015, with a view to strengthening the Company's good governance process, theBoard of Directors decided to create a committee dedicated to governance issues,tasked with monitoring changes in governance rules and ensuring their properapplication and integration by the Group.114| 2016 ANNUAL REPORT2016 ANNUAL REPORT|115GOVERNANCE COMMITTEEThe Governance Committee is currently comprised of three members: Frédéric Saint-Geoursand Sylvia Jay, who are independent members, and David de Rothschild. Frédéric Saint-Geours, Senior Independent Director, is the Committee Chairman. In order to more effectively take into consideration the highly international dimension of theGroup today as well as the several listed companies in its make-up, whether subsidiaries orparent companies, both in France and internationally, the Board of Directors felt the needto enhance its committees in order to support the good governance process. The Governance Committee was thus created in 2015 with the aim of monitoring thedevelopment of governance rules and ensuring their proper application and integration bythe Group as well as proposing any appropriate changes. In addition, it is tasked withreviewing the Group's corporate social responsibility policy. Its responsibilities have beendetermined so as to complement those of the other two committees. The GovernanceCommittee assists the Board in implementing and applying governance rules and bestpractices and monitors all ethical issues relating to the directors, the assessment of theBoard of Directors' procedures and the management of conflicts of interests. It also examinesthe structure, size and composition of the Board on a regular basis.The Governance Committee's organisation and procedures are described in a charterapproved by the Board of Directors. The Governance Committee met three times in 2016, with an attendance rate of 100%.Organisation and procedures of the Board of DirectorsCommercial Code (Code de Commerce). The Audit Committee is responsible for assisting theBoard of Directors in reviewing and approving the annual and interim financial statementsand in dealing with transactions or events that could have a material impact on the positionof Casino, Guichard-Perrachon or its subsidiaries in terms of commitments and/or risks.Accordingly, pursuant to Article L. 823-19 of the Commercial Code, the Committee is incharge of matters relating to the preparation and auditing of accounting and financialinformation. Specifically, it monitors the effectiveness of the internal control and riskmanagement systems, the audit of the parent company and consolidated financialstatements by the Statutory Auditors and the Statutory Auditors' independence. Since2015, as part of a good governance process and in order to better identify and managepotential conflicts of interests, it has also been tasked with reviewing significant agreementswith related parties prior to their conclusion.A charter sets out the Committee's powers and duties, particularly those concerning riskmanagement, the identification and prevention of management errors and the procedureby which agreements with related parties are reviewed. The Audit Committee met eight times in 2016, with an attendance rate of 96.43%. APPOINTMENTS AND COMPENSATION COMMITTEEThe Appointments and Compensation Committee is currently comprised of three members,two of whom are independent: Gérald de Roquemaurel and Nathalie Andrieux, who areindependent, and Jacques Dumas. Gérald de Roquemaurel is the Committee Chairman. The Appointments and Compensation Committee’s primary role is to assist the Board ofDirectors in a) reviewing candidates for appointment to Senior Management positions andfor election to the Board of Directors, b) assessing directors’ independence, c) setting andoverseeing executive corporate officers' compensation as well as stock option and sharegrant policies, and d) establishing employee share ownership plans. A charter sets out itspowers and duties. The Appointments and Compensation Committee met five times in 2016, with anattendance rate of 86.67%. Ownership structure at 31 December 2016 Number of shares%Voting rights%Public 53,838,179 48.5% 57,714,619 35.4%Groupe Rallye 55,930,447 50.4% 103,146,472 63.3%Employee mutual fund 1,126,114 1.0% 2,213,265 1.4%Treasury shares 102,256 0.1% 0 0.0%Total 110,996,996 100% 163,074,356 100,0%Five-year share performanceSeveral major subsidiaries are also publicly listed: Share informationStock exchangeEuronext Paris (Compartment A)Symbol– ISIN : FR0000125585– Bloomberg : CO FP– Reuters : CASP. PAIndices– BenchmarkCAC NEXT 20, CAC Large 60, SBF 120, SBF 250, Euronext 100– SectorDJ Stoxx and DJ Euro Stoxx Retail– Socially responsible investingFTSE4GOOD ;Euronext Vigeo index : Eurozone 120, Europe 120, World 120 and France 20 ;Ethibel Sustainability Index (ESI) Excellence Europe ;MSCI Global Sustainability Indexes et MSCI Global SRI Indexes ;STOXX®Global ESG leaders Indices.Eligiblefor the Deferred Settlement System (SRD)and for the PEA share savings plan (PEA)Shares outstanding110,996,996 at 31 December 2016Market capitalisation€5.1 billion at 31 December 2016Credit ratingCasino has been BB+ rated (stable outlook) by Standard & Poor's since 21 March 2016 and BBB- (negative outlook) by Fitch Ratingssince 14 December 2016.Sponsored ADR programmeStructure : Level I ADRBloomberg ticker : CGUSY USCUSIP : 14758Q206ADR depositary bank : Deutsche Bank Trust Company Americas2016 share performance€60€55€45€50€40€35€30Jan. Feb March April May JuneJuly Aug. Sept. Oct. Nov. Dec. Casino: 7.5%*CAC 40: 4.9%Price at 31 December 2016: €45.6Price at 31 December 2015: €42.420162015201420132012Average daily trading volumeIn number of shares 1,016,660949,293631,839627,764662,020In € millions 46.359.354.149.146.2High/lowHigh (in €) 54.987.997.586.875.9Low (in €) 35.238.770.068.561.7Closing price at 31 December (in €)45.642.476.583.872.1Dividend per share (in €) 3.123.123.123.123.00• CBD (Brazil) on the BM&F Bovespa in São Paulo and the NYSE (USA),• Éxito (Colombia) on the BVC in Colombia,• Cnova (Netherlands) on Euronext Paris.The Casino share price is displayed in real-time under "The Casino share" in the Finance section of the corporate website:http://www.groupe-casino.frCasino share performance and ownership116| 2016 ANNUAL REPORT2016 ANNUAL REPORT|117* Evolution of Casino’s share price in 2016 : + 7.5% ; +11.2% including the interim dividend ; +18.4% including the interim dividend and dividend(1)2015 data have been restated from the divested operations in Asia. In addition, following the end-2016 decision to sell Via Varejo, and inaccordance with IFRS 5, Via Varejo (including Cnova Brazil) has been reclassified as discontinued activity.(2)Underlying net profit corresponds to net profit from continuing operations adjusted for the impact of other operating income and expense, asdefined in the “Significant Accounting Policies” section of the notes to the annual consolidated financial statements, and to non-recurringfinancial items and non-recurring tax credits and expenses.(3) Scope: Casino Guichard Perrachon, the parent company, the French business activities, and the wholly-owned holding companies.Financial highlights118| 2016 ANNUAL REPORT2016 ANNUAL REPORT|119Revenue and resultsIn € millions 2016 2015(1)Net revenue 36,030 35,312EBITDA 1,697 1,689Trading profit 1,034 997Consolidated net profit, Group share 2,679 -43Underlying net profit(2), Group share 341 357Consolidated net debt 3,367 6,073Casino France net debt(3) 3,200 6,081Per share dataIn € 2016 2015Diluted earnings per share[1] 2.56 2.31Net dividend 3.12[2] 3.12(1)Diluted earnings per share includes the dilutive effect of the Monoprix mandatory convertible bonds (ORA) and TSSDI deeply subordinatedperpetual bonds. (2)Dividend subject to shareholder approval at the Annual General Meeting on 5 May 2017.Consolidated net revenue120| 2016 ANNUAL REPORT2016 ANNUAL REPORT|12153%Change in net revenueConsolidated revenue breakdownRevenue breakdown for France Retail Change Organic change In € millions 2016 2015vs 2015vs 2015(1)France Retail 18,939 18,8900.3%0.8%o/w:Hypermarkets 4,722 4,7030.4%1.8%o/w Géant Casino 4,432 4,4230.2%1.6%Casino supermarkets 3,301 3,2142.7%3.8%Monoprix 4,230 4,1352.3%1.6%Franprix/Leader Price 4,111 4,238-3.0%-1.6%Convenience stores & other 2,575 2,601-1.0%-1.3%Latam Retail 15,247 14,7143.6%11.4%Groupe Éxito (off GPA Food) 4,499 4,662-3.5%10.8%GPA Food 10,749 10,0526.9%11.7%Cdiscount 1,843 1,7087.9%8.8%Group 36,030 35,3122.0%5.7%(1)Excluding petrol and the calendar effect and at constant exchange rates.42%38%40%22%5%France RetailLatam RetailE-commerceDiscount banners Premium banners Convenience banners(including Franprix)EBITDA and trading profit122| 2016 ANNUAL REPORT2016 ANNUAL REPORT|123Group EBITDA - 2016In € millions20162016 at CER(1)2015(2)France Retail872872726Latam Retail816880980E-commerce109-17Group1,6971,7621,689EBITDA marginGroup trading profit - 201620162015France Retail4.6%3.8%Latam Retail5.3%6.7%E-commerce0.5%-1.0%Group4.7%4.8%Trading margin20162015France Retail2.7%1.8%Latam Retail3.5%4.7%E-commerce-0.6%-2.3%Group2.9%2.8%In € millions20162016 at CER(1)2015(2)France Retail508508337Latam Retail538583698E-commerce-11-12-39Group1,0341,080997(1)CER : Constant Exchange Rates(2)2015 data have been restated from the divested operations in Asia. In addition, following the end-2016 decision to sell Via Varejo, and inaccordance with IFRS 5, Via Varejo (including Cnova Brazil) has been reclassified as discontinued activity.Store network in France124| 2016 ANNUAL REPORT2016 ANNUAL REPORT|125At 31 December 20142015 2016Géant Casino hypermarkets127128 129o/w French affiliates 77 7International affiliates 1011 12Casino supermarkets444441 447o/w French affiliates/franchise 6360 83International affiliates/franchises 3233 33Monoprix632698 745o/w affiliates/franchises186197 196Naturalia 90126 141Naturalia franchises 23 5Franprix860867 858o/w franchises323350 392Leader Price801810 796o/w franchises207263 383Total supermarkets + discount 2,7372,816 2,846Convenience stores 6,8256,916 6,065Indian Ocean 129146 185Other activities (Food services, drive-through, etc.) 598621 630TOTAL France 10,41610,627 9,855In thousands of sq.m201420152016Géant Casino hypermarkets925926916Casino supermarkets712722 733Monoprix716698711Franprix371364356Leader Price648661664Total supermarkets + discount2,4472,4452,464Convenience stores858866783Indian Ocean 112114115France total 4,3454,3504,280Number of storesRetail spaceInternational store network126| 2016 ANNUAL REPORT2016 ANNUAL REPORT|127At 31 December 20142015 2016ARGENTINA 2727 27Libertad hypermarkets 1515 15Mini Libertad convenience stores 1212 12URUGUAY 5465 79Géant hypermarkets 22 2Disco supermarkets 2829 29Devoto supermarkets 2424 24Devoto Express convenience stores 10 24BRAZIL 1,1061,167 1,135Extra hypermarkets 137137 134Pão de Açúcar supermarkets 181185 185Extra supermarkets 207199 194Assaí (discount) 8495 107Minimercado Extra convenience stores 256311 284Drugstores 158157 155+ service stations 8383 76COLOMBIA 1,2581,668 1,873Éxito hypermarkets 8285 86Éxito and Carulla supermarkets 153163 166Super Inter supermarkets 4658 67Surtimax (discount) 8741 248 1 445o/w Aliados 7211 095 1 307Éxito Express and Carulla Express 102113 109Other 11 0International total 2,4452,927 3,114In thousands of sq.m 20142015 2016ARGENTINA 115112 109Libertad hypermarkets 113111 107Mini Libertad convenience stores 22 2URUGUAY 8083 85Géant hypermarkets 1616 16Disco supermarkets 3132 31Devoto supermarkets 3333 33Devoto Express convenience stores 2 4BRAZIL 1,7521,804 1,814Extra hypermarkets 812803 789Pão de Açúcar supermarkets 233237 237Extra supermarkets 237228 222Assaí (discount) 317373 421Minimercado Extra convenience stores 6279 71Drugstores 1112 11+ service stations 8173 62COLOMBIA 889970 1,011Éxito hypermarkets 460472 475Éxito and Carulla supermarkets 205212 214Super Inter supermarkets 5458 61Surtimax (discount) 151206 240o/w Aliados Éxito Express and Carulla Express 1821 20Other 11 0International total 2,8362,970 3,019Number of storesRetail spaceCONTACTSCorporate CommunicationsPhone: +33 (0)1 53 65 24 29E-mail: directiondelacommunication@groupe-casino.fr Financial Communications and Investor Relations Phone: +33 (0)1 53 65 64 17E-mail: IR_casino@groupe-casino.frCorporate Social Responsibility (CSR)Phone:+33 (0)1 53 70 51 97Group Websitewww.groupe-casino.frPrinted on 100% recycled paper at an Imprim’Vert-certified print shop.COORDINATIONCorporate Communications DepartmentWritingLaure Martin-Tervonen | Bureau ZGraphic designÉric Bury | ShamanPhoto creditsIconography: internal libraryPrintingA Print - ParisSHAREHOLDER RELATIONS1, Cours Antoine GuichardCS 50306 - 42008 SAINT-ETIENNE Cedex 1 - France Website: www.groupe-casino.fr E-mail: actionnaires@groupe-casino.fr Toll-free number: 0800 16 18 20(landline calls originating in France only)To convert bearer shares to registered shares, contact the financial intermediary handling the shares concerned,who will in turn register them with: BNP Paribas Securities Services – GCT Shareholder Relations Grands Moulins de Pantin 9, rue du Débarcadère F-93761 Pantin Cedex - France Phone: +33 (0)1 40 14 31 00 Authorised agent for management of shareholder registration.CASINO, GUICHARD-PERRACHONShare capital: €173,192,459.58Headquarters1, Cours Antoine GuichardCS 50306 - 42008 SAINT-ETIENNE Cedex 1 - France Phone: +33 (0)4 77 45 31 31 Fax: +33 (0)4 77 45 38 38The Company is registered in Saint-Étienne Cedex 2 under no. 554 501 171 RCS.Paris office148, rue de l’Université75007 Paris - France Phone: +33 (0)1 53 65 25 00128| 2016 ANNUAL REPORTGROUPE CASINO1, Cours Antoine Guichard - CS 50306 - 42008 SAINT-ETIENNE Cedex 1Tel: +33 (0)4 77 45 31 31 – Fax: +33 (0)4 77 45 38 38@Groupe_Casinogroupe-casino.fr

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