May 22, 2019 / 12:30 PM / 3 months ago

Retailer Casino's Franprix and Cdiscount arms join up on Paris express delivery

PARIS, May 22 (Reuters) - Casino's supermarket chain Franprix and its 'Cdiscount' E-commerce unit unveiled plans to pool their respective expertise in city center convenience stores and E-commerce to attract more clients and boost sales.

The plan is for Franprix and Cdiscount to offer from September onwards the delivery within 30 minutes to Paris shoppers' doors of a selection of food and non-food items.

There will also be Cdiscount corners within Franprix stores to offer exclusive household electrical equipment and high tech products as well as selection of wines.

The partnership comes with Casino in the process of selling assets to cut its debts and allay investors' concerns over the financial position of both Casino and its parent company Rallye .

Casino has vowed to boost profits and cash flow in its core French market, and it is also hoping to generate 1 billion euros ($1.1 billion) from the sale of groceries online by 2021, up from 300 million in 2018.

It is banking on monetizing client data, extracting savings from purchasing deals and having a greater focus on E-commerce, organic food, convenience stores and energy services, as part of that strategy to have better financial results.

"There is a total complementarity of Cdiscount and Franprix clients for the Casino group," said Cdiscount CEO Emmanuel Grenier, adding that the deal would help Cdiscount expand its client base into the lucrative Paris market.

Franprix made 1.6 billion euros of sales last year from its network of 900 stores, while Cdiscount - France's second-largest e-commerce retailer after Amazon - had sales of 1.9 billion euros.

Casino also recently strengthened its ties with E-commerce giant Amazon.

$1 = 0.8953 euros Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta

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