By Shivani Tanna
(Reuters) -Supermarket chain Casino said on Wednesday its first-quarter sales remained negative but showed a slight improvement after its convenience brands reported virtually stable net sales.
On a same-store basis and excluding acquisitions, currency effects and revenue on fuel, sales fell by 3.8% compared with a 4.6% decline in the fourth quarter of 2023.
The French company, which reported first-quarter net sales of 2.1 billion euros ($2.24 billion), earlier in the day said it would lay off up to 3,267 employees in a bid to improve its financial situation as it aims to become France's leading convenience store retailer.
In a separate statement, Casino said it will implement a reverse share split of its share capital through the exchange of 100 existing shares for each new share.
Casino completed its financial restructuring and its new leadership team centered around Czech billionaire Daniel Kretinsky took over last month, ending the 30-year reign of the company's owner, Jean-Charles Naouri.
Casino has already reached agreements with French rivals on the sale of 288 supermarkets and hypermarkets in France, leaving it with convenience brands including Monoprix and Franprix, which also focuses on city-centre stores.
The company's net debt at end of March 2024 was 1.6 billion euros, compared with 6.2 billion euros at the end of December 2023.
Casino, which is attempting to sell more of its hypermarkets and supermarkets, said that if no buyers are found, it may close some and certain logistics platforms.
It also announced a 1.2 billion euro investment to modernise its stores by 2028, saying it will strengthen purchasing partnerships with French retailer Intermarche and extend them to Auchan.
($1 = 0.9355 euros)