CNOVA
N.V.
Full Year 2017 Activity
AMSTERDAM - January 12, 2018,
07:45 CET - Cnova N.V. (Euronext Paris: CNV ;
ISIN: NL0010949392) ("Cnova" or the "Company") today announced
unaudited operating data for the quarter and full year ended
December 31, 2017, and provided a progress report on its strategic
realignment plan.
-
GMV: €3.4 billion (+10%
like-for-like[1])
-
Net sales: €2.1 billion (+9%
like-for-like[1])
-
Continued strong market share
gains since April 2017[2]
-
Traffic: 946 million visits
(+12%)
-
Active customers: 8.6 million
(+6%)
-
Orders: 27 million
(+8%)
Emmanuel Grenier, Cnova CEO, commented:
"After an
outstanding sales performance in the 3rd quarter,
Cnova concluded 2017 with record breaking Black Friday traffic and
sales performances. 2017 saw the launch of our new strategic plan
in the 2nd quarter. Our
double-digit GMV growth, continued market share gains month since
April[2] as well as
the increase in customer satisfaction[3] illustrate
the relevance of this plan, which reinforced our positioning as the
leading French e-merchant. The significant
investments required for its implementation are however temporarily
weighing on our financial performance, although with a sequential
improvement throughout the year 2017.
First, we aim to
make available the best products and services to our customers at
the most competitive prices. To do so, the number of products
eligible for our free express delivery option of our loyalty
program Cdiscount à volonté tripled over the year while our
marketplace references increased by more than 80%. We also
successfully launched innovative new services for our customers
such as our exclusive instant consumer credit offer ("Coup de
pouce") and our home energy supply solution, the most affordable on
the market, Cdiscount Energie.
Second, we
significantly enhanced customers' experience all along the customer
journey. As a first step, before purchase, with the complete
revamping of our mobile site and app, now one of the best rated in
the market with a 4.5/5 grade. And also after purchase with our
unique same-day delivery offer now available in Paris, Lyon and
Lille.
Third, we are
accelerating the development of monetization through the creation of a comprehensive
marketplace ecosystem dedicated to our vendors: ramp-up of
fulfillment services, offer of tailored advertising as well as
financial and transportation services.
As we move into
2018, we remain committed to accelerate the implementation of our
strategic plan, striving to offer the best on- and offline customer
experience, while reinforcing new revenue streams and dynamics of
innovation."
Full Year 2017
Highlights
GMV (gross
merchandise volume) totaled €3.4 billion, an increase of 9.6%
versus 2016 on a like-for-like (l-f-l) basis. On a reported basis,
GMV rose 13.2% compared to 2016. After a modest start in the first
quarter of 2017, Cdiscount commercial performance has been boosted
by the strategic realignment plan initiated in the second quarter
of 2017 which led to an historical sales performance in the
3rd quarter and
a record-breaking Black Friday in November.
Mobile share
of GMV continued to strongly increase at 38.1% for the full year
2017, i.e. +737 basis points compared to 2016.
The marketplace share of total GMV reached 32.0% in 2017
compared to 31.4% in 2016. The number of marketplace references
increased by more than 80% year-on-year (y-o-y). The share of
marketplace GMV fulfilled by Cdiscount more than doubled y-o-y to
reach 19% at the end of 2017.
Net sales
totaled €2.1 billion in 2017, up 9.3% on a l-f-l basis compared to
2016 (+14.4% on a reported basis). Home Furnishings and Household
Appliances accounted for 45% of direct sales, while Hi-tech items
(audio visual and smartphones) and IT goods represented 35%.
According to Gfk, Cdiscount posted
continued market share gains in Technical Goods (Hi-tech, Computers
and Home Appliances) since April with y-o-y market share gains of
respectively 1.5 pt and 1.4 pt in value and 1.7 pt in volume in
October and November.
Traffic at
Cdiscount.com grew by 12.4% in 2017 to 946 million visits. The
mobile share of traffic rose 645 basis points
to 59.5% in 2017.
The number of active customers amounted to 8.6 million, a y-o-y
increase of 6.0%. Membership of Cdiscount à volonté (CDAV) continued to grow
rapidly, increasing by 48% compared to December 2016.
Cdiscount confirmed its leadership
in social media visibility and commitment among
top e-retailers in France. According to a NukeSuite study published
in November 2017, Cdiscount ranks first on Facebook France in terms
of interactions (likes, shares and comments). Cdiscount strong
social media profile was confirmed during Black Friday with a total
of 223,000 interactions, by far the best performance among main
retailers in France[4].
Orders
increased by 8.3% to reach 26.8 million in 2017. CDAV customers
accounted for 29.7% of total orders in 2017 compared to 18.6% in
2016, purchasing on average three times more frequently than
non-CDAV customers.
The number of
items sold rose by 6.9% to 52.8 million in 2017.
Strategic
Realignment Plan Progress Report
The Strategic Realignment Plan
(product catalogue expansion, reinforcement of multichannel
strategy and customer delivery and technological enhancements)
launched in the 1st semester of
2017 has been successfully implemented.
Product catalogue
expansion:
-
By the end of 2017, Cdiscount already tripled
the number of CDAV-eligible SKUs (objective to quadruple by 1Q18)
and the number of marketplace references increased by more than
80%, outpacing by far the objective of 50%.
-
This product catalogue expansion was supported
by the extension of Cdiscount's distribution center (DC) floor
space which increased this year by around 70% to 530,000 sqm at end
2017 with a total of 10 DCs.
Multichannel strategy reinforcement:
Cdiscount is now
managing the Hi-tech and Home Furnishing product categories of
Géant hypermarkets and Casino integrated supermarkets
(collectively, DCF), providing immediate in-store availability for
c. 5,000 references. 2017 net sales generated in DCF stores
amounted to €108 million.
In the
2nd half of
2017, several additional initiatives were undertaken to enhance our
multichannel offer:
-
After the successful launch in September of a
300 sqm "Cdiscount corner" in Géant Fenouillet (Toulouse), three
new corners opened in Géant stores located in Amiens, Nîmes and
Quimper in December. These corners allow customers' in-store
shopping of Cdiscount products with over 600 references presented
in a showroom dedicated to Cdiscount Home product offerings as well
as in areas dedicated to Technical Goods items and best deals
offers.
-
Development of in-store interactive terminals
presenting Cdiscount product catalogue with over 68,000 SKUs
available with customers' recommendations and detailed product
sheets as well as dedicated in-store sales assistants to help
customers in their purchases.
-
Additional synergies with DCF were implemented
through combined promotions and commercial events, in particular
very powerful exclusive offers during Black Friday.
Delivery
enhancements and logistical innovations:
-
Same-day delivery: Cdiscount is the only player
to offer same-day delivery for both large (>30 kg) and small
products (<30 kg) in the Paris region and Lyon and of small
products in Lille. This service is scheduled to be available in
other large cities in 2018.
-
Sunday delivery: after an exclusive test on
Sunday delivery with Chronopost in Paris since 2016, Cdiscount
extended this service to 14 major French cities as of the end of
2017.
-
Real-time geolocation: thanks to its exclusive
partnership with Bringg, Cdiscount became the forerunner of
real-time geolocation of large-product deliveries in France.
Customers benefit from reduced delivery time slots and are able to
contact and rate the carrier. This service, currently available in
Paris, Bordeaux and Lyon regions will be extended all over France
in 2018.
-
Automation: Cdiscount exclusively developed in
its Cestas warehouse with Exotec Solutions a unique and
state-of-the-art order picking system, Skypod, with robots
programmed to pick up products stored as high as 10 meters and
bring them to warehouse operators. This new solution will
significantly improve DC productivity and reduce by four
Cdiscount's inventory storage surface requirement.
-
Innovation: Cdiscount launched the incubator
"The Warehouse" and selected for its first round 4 start-ups:
NoMagic.AI (machine learning), ez-Wheel (autonomous electric
wheel), ShopRunBack (parcel returns automation) and Citodi
(optimization of delivery rounds). These start-ups benefit from a
500 sqm dedicated floor space in one of Cdiscount's DC. This
program will be rolled-out in 2018 with new areas of logistics
innovation.
Technological advantages and customer experience:
-
Personalization: acceleration of personalization
throughout the whole customer journey on sites and app with
customized homepage and messages, targeted offers and product
recommendations based on purchasing behavior and geolocation.
-
Gamification: new games and challenges every
week attracting around 10,000 players per day.
-
Sites and app performance: deployment of React
technology. Cdiscount mobile site now ranks 2nd among
main e-commerce sites in France in terms of page loading
speed[5] while
Cdiscount application is one of the best rated in the Apple store
with a 4.5/5 grade based on 46,000 reviews.
-
Voice and chatbot: development of chatbots with
a first test on wine products and two apps for Google Home on deals
of the day and parcel tracking.
-
Payment means: introduction of Paylib and Lydia,
targeting a younger customer base.
New revenue
streams:
-
Services: successful launch of market disruptive
B2C services such as "Coup de pouce", an instant consumer credit
offer and a mass-market home energy supply solution, Cdiscount
Energie, the most affordable on the market.
-
Fulfillment: acceleration in Fulfillment-by-Cdiscount (FBC) services offered to
marketplace vendors. GMV share and number of SKUs nearly doubled vs
end 2016.
-
Development of services to marketplace vendors
thanks to the ramp-up of a full marketplace ecosystem with
value-added services which will further enhance profitability:
premium packs with increased visibility for vendors' offers,
tailored advertising, sales reports, financial and transportation
services.
4th Quarter 2017
Highlights
GMV amounted
to €1.1 billion for the 4th quarter
2017, up 7.9% on a l-f-l basis compared to the same period in 2016
(+15.9% on a reported basis).
Net sales
totaled €701 million in the 4th quarter
2017, i.e. an increase of 9.2% on a l-f-l basis compared to the
same period in 2016. On a reported basis, net sales were up by
20.1% vs the 4th quarter
2016. All categories benefited from Black Friday in November (up
80% compared to 2016), which also contributed to the site traffic dynamism with a record growth of nearly 40% vs
2016 Black Friday.
Cdiscount unveiled a new brand strategy early November relying on the signature
"N'économisez pas votre plaisir", i.e. "Don't
spare your pleasure". Based on Cdiscount core values, i.e.
proximity and boldness, this new strategy is expected to reinforce
Cdiscount's emotional connection to its customers and consolidate
its position as the leading French e-retailer.
***
Annex A - Full
Year Activity
Cnova N.V. |
Full year(1) |
Change |
2017 |
2016 |
Reported(1) |
L-F-L(2) |
GMV(3)
(€ millions) |
3,390.5 |
2,994.3 |
+13.2% |
+9.6% |
Marketplace
share |
32.0% |
31.4% |
+56 bp |
Mobile
share |
38.1% |
30.8% |
+737 bp |
CDAV share |
31.1% |
20.4% |
+1,063 bp |
Net sales (€ millions) |
2,122.0 |
1,855.7 |
+14.4% |
+9.3% |
Traffic (visits in
millions) |
946.1 |
841.8 |
+12.4% |
Mobile
share |
59.5% |
53.0% |
+645 bp |
Active customers(4)
(millions) |
8.6 |
8.2 |
+6.0% |
Orders(5)
(millions) |
26.8 |
24.7 |
+8.3% |
CDAV share |
29.7% |
18.6% |
+1,109 bp |
Number of items sold (millions) |
52.8 |
49.4 |
+6.9% |
Annex B - Fourth
Quarter Activity
Cnova N.V. |
4th
quarter(1) |
Change |
2017 |
2016 |
Reported(1) |
L-F-L(2) |
GMV(3)
(€ millions) |
1,093.4 |
943.2 |
+15.9% |
+7.9% |
Marketplace
share |
30.6% |
31.4% |
-78 bp |
Mobile
share |
39.2% |
34.5% |
+465 bp |
CDAV share |
32.3% |
25.9% |
+647 bp |
Net sales (€ millions) |
701.2 |
584.1 |
+20.1% |
+9.2% |
Traffic (visits in
millions) |
282.2 |
253.3 |
+11.4% |
Mobile
share |
61.3% |
55.1% |
+629 bp |
Active customers(4)
(millions) |
8.6 |
8.2 |
+6.0% |
Orders(5)
(millions) |
8.4 |
8.2 |
+2.3% |
CDAV share |
31.4% |
25.4% |
+602 bp |
Number of items sold (millions) |
17.3 |
17.1 |
+1.1% |
-
All figures are unaudited and
have been adjusted for all periods to reflect i) the merger of
Cnova Brazil into Via Varejo on October 31, 2016, ii) the sale or
closure of Cdiscount international sites, and iii) the sale of the
specialty site MonShowroom. These are reported as discontinued
activities in accordance with IFRS 5 as of January 1,
2016.
-
Like-for-like (l-f-l): figures
have been adjusted to make them comparable across periods, by
eliminating: i) operating data related to the specialty sites
Comptoir des Parfums, Comptoir Santé and MonCornerDéco due to their
sale or closure in 2016, ii) B2B operating data due the voluntary
pullback of their sales initiated in the 3rd quarter of 2016, iii)
the leap year impact in 2016 (-0.4 pt and -0.3 pt on GMV and net
sales growth, respectively) and iv) Cdiscount sales made to Casino
clients in France in relation with the multichannel agreement with
Casino effective since June 19, 2017 (+4.3 pts and +5.8 pts on GMV
and net sales growth, respectively).
-
GMV (gross merchandise volume)
is defined as product sales + other revenues + marketplace business
volumes (calculated based on approved and sent orders) +
taxes.
-
Active customers at the end of
December having purchased at least once through Cdiscount sites and
app during the previous 12 months.
-
Total placed orders before
cancellation due to fraud detection and/or customer
non-payment.
***
About Cnova N.V.
Cnova N.V., one
of the leading e-Commerce companies in France, serves 8.7 million
active customers via its state-of-the-art website, Cdiscount. Cnova
N.V.'s product offering of more than 37 million items provides its
clients with a wide variety of very competitively priced goods,
several fast and customer-convenient delivery options as well as
practical payment solutions. Cnova N.V. is part of Groupe Casino, a
global diversified retailer. Cnova N.V.'s news releases are
available at www.cnova.com. Information available on, or accessible
through, the sites referenced above is not part of this press
release.
This press
release contains regulated information (gereglementeerde
informatie) within the meaning of the Dutch Financial Supervision
Act (Wet op het financieel toezicht) which must be made publicly
available pursuant to Dutch and French law. This press release is
intended for information purposes only.
***
Cnova Investor Relations Contact:
investor@cnovagroup.com
Tel: +31 20 301 22 40 |
Media contact:
audrey.donazzolo@cdiscount.com
Tel: +33 5 56 30 07 14 |
[1]
Like-for-like (l-f-l): figures have been adjusted to make them
comparable across periods, by eliminating: i) operating data
related to the specialty sites Comptoir des Parfums, Comptoir Santé
and MonCornerDéco due to their sale or closure in 2016, ii) B2B
operating data due the voluntary pullback of their sales initiated
in the 3rd quarter of
2016, iii) the leap year impact in 2016 (-0.4 pt and -0.3 pt on GMV
and net sales growth, respectively) and iv) Cdiscount sales made to
Casino clients in France in relation with the multichannel
agreement with Casino effective since June 19, 2017 (+4.3 pts and
+5.8 pts on GMV and net sales growth, respectively).
[2] Gfk
Technical Goods market shares.
[3] Internal
measurement of client satisfaction through the Net Promoter Score
(NPS).
[4] According
to a Sprinklr survey published on November 27, based on the volume
of references associated to Black Friday made on social media,
news, blogs, and forums in French.
PR Full year 2017
Activity
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cnova N.V. via Globenewswire
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