Shopping

Cyndy Camp and Sarah Holden-Remick are so devoted to the mission of their new, eco-friendly store at 68 Main Street that they even considered the name with care and ingenuity.

The Tip Toe Eco Market.

You likely recognize “Eco” as an abbreviation for “environment.” So whence did the concept of Tip Toe originate?

Holden-Remick said, “Tread softly on Earth.”

In other words, decreasing your carbon impact on the world. Tip-toeing.

Creativity abounds in the store’s kitchen and workshop, as well as on the shelves, which include natural items from local consignors. Next, customers will be able to observe Holden-Remick creating her bath and body products and enroll in classes.

Mid-February saw the soft launch of Tip Toe, with the formal grand opening scheduled for May 1. There will be a one-day seminar on silk-scarf painting on March 25 and a ribbon-cutting event with the Kennebunk-Kennebunkport-Arundel Chamber of Commerce on March 31.

Today, the store is open from 10 a.m. to 5 p.m., Thursday through Sunday. The business will maintain these hours seven days a week beginning on May 1.

Tip Toe is a “hub for all things eco-friendly, natural, and sustainable,” according to Holden-Remick, while Camp considers it a “one-stop shop for everything that makes it easy for individuals to be sustainable.”

The new proprietor of the Waldo Emerson Inn: “We’re here to have fun.”

Cooperating to establish Tip Toe Eco Marketplace Holden

Remick and Camp met in the farmers’ markets where they had sold their respective products for the past few years. After they began communicating, they realized they had the same objective.

“We both desired to build a store without plastic and with a refill station,” Holden-Remick explained.

Each individual felt it would be difficult to pursue the concept on her alone. So they joined forces.

More than 20 consigners from Southern Maine and New England now stock the shop with their wares, which include bath and body products such as soaps, shampoos, lotions, salsa, artwork, stained glass, and birdhouses, among others.

Camp stated, “We’re ecstatic.” “Many of the consignors went the additional mile to replace their own packing so that they could be here with us… We have removed the requirement for plastic wrap and other similar materials.”

More consignors are forthcoming. For example, a beekeeper in Eliot will shortly sell his honey.

The studio at the rear of the store, according to Camp and Holden-Remick, should be completed within days, in time for the 25th silk-scarf painting class that Dawn Burns, owner of The Creative Soul in Kennebunk, will instruct. Other workshops will thereafter focus not just on product creation but also on physical and mental health.

“One of our consultants is interested in taking a Reiki class,” Holden-Remick explained. “One of our consignors wants to conduct a lesson on herbal medicine.”

Holden-Remick moved from England to the United States in 2014, where she founded her own firm, Serendipity Soap Company, and began manufacturing her own bath and body products.

Camp has worked in a variety of industries during her career, including government, education, and tourism, in order to “understand many diverse perspectives.” She has been the proprietor of Leave No Trace Refillery for three years. Instead of discarding their empty containers, Camp’s clients call her and request that she refills them.

Camp stated that she modeled her character after the milkman of bygone eras. But, Camp brings cleaning vinegar, hand sanitizer, makeup remover, and other refillable goods in lieu of milk.

“My business has served as my vehicle,” stated Camp. “I go door-to-door and refill my clients’ containers with Earth-friendly items I’ve researched so they may reduce their usage of single-use packaging.”

A new kitchen, a rooftop bar with beach views, and further renovations are planned for The Front Porch in Ogunquit.

Items not available elsewhere in Kennebunk

In order to avoid “stepping on the toes” of other companies in Kennebunk, Holden-Remick, and Camp request that their consignors do not sell their items elsewhere in the city.

“This is so we don’t compete with one other and remain distinct,” Camp explained. We are simply doing our best to assist everyone.

During the epidemic, Zainab Ali began utilizing an online food delivery service and instantly became a devotee. She became accustomed to the convenience, avoiding parking complications and no longer carrying hefty luggage. In June of last year, she relocated from Los Angeles to South Philadelphia and immediately signed up for Whole Foods Market’s delivery service.

“I appreciate the quality of their fruit, meat, and fish,” said Ali, 37, who spends between $70 and $100 every week, including transportation costs and gratuities. She has seldom seen issues with food quality or missing things in her deliveries.

Ali is among an increasing number of people who purchase groceries online. IBISWorld, a business research firm, forecasts that online food purchases in the United States would generate $36.3 billion this year, up from $20.1 billion in 2019, before the epidemic.

It is anticipated that online grocery sales would increase by 3.6% this year, despite the fact that more customers are returning to shops. According to the report, the increased convenience of online grocery shopping will continue to draw new clients.

Since launching online shopping in Pennsylvania and New Jersey in the fall of 2017, Wegmans has experienced over 600% growth, according to Erica Tickle, vice president of e-commerce. Around 10% of its customers purchase groceries online, and the supermarket utilizes a combination of Instacart shoppers and Wegmans personnel to fulfill these orders.

Cost of online grocery shopping

Online grocery shopping is costly for grocers since they must cover the costs of an employee (or contractor) selecting, packaging, and delivering the products. McKinsey & Company, a management consulting organization, estimates that a typical North American supermarket makes around $4 on a $100 shopping basket while the consumer is perusing the aisles.

When the grocer must physically choose things from the store and deliver them to the consumer, they incur a loss of around $13 on a $100 grocery transaction. To recover these losses, the grocer must increase prices, impose new levies, or do both. Membership fees, service fees, and delivery fees vary per business and service but often include a membership fee, service cost, and delivery fee. Online grocery prices are around 15% more than in-store prices.

Several services need memberships that carry a one-time, fixed price, but may reduce subsequent payments. For instance, Whole Foods Markets does not impose a minimum order for delivery, but customers must have a Prime membership, which costs either $139 per year or $14.99 per month, plus a $9.95 service charge for every order. There are additional expenses for expedited alternatives. Most local stores require a $35 purchase minimum for delivery without a membership.

Several supermarkets, including Wegmans, GIANT, Acme, Sprouts, and Shop Rite, teamed with Instacart to engage gig workers who can manage the logistics of their delivery and pickup services as online shopping grew in popularity during the epidemic.

Instacart, which was started in 2012, offers same-day delivery beginning at $3.99 for orders over $35. For subscribers who pay $99 annually for unlimited deliveries, there is an extra 4% transaction fee charged by Instacart. This transaction cost climbs to 7% for non-members, and gratuities are optional.

Customers can select GIANT Direct through the store’s website or app, and for a $7.95 delivery fee and a $60 minimum purchase, GIANT staff will shop for and deliver the items. Instead, clients can submit orders via Instacart and have Instacart personnel purchase and deliver from a GIANT store.

Online shopping fees are not the only means through which retailers pass on expenses to customers. Philadelphia banned single-use plastic bags a year ago, while New Jersey banned both single-use plastic and paper bags. While many Philadelphia grocery stores use paper bags for delivery, several New Jersey businesses provide reusable bags. Online and in-store grocers are passing these expenses on to consumers, who are frequently left with stacks of paper or reusable bags.

Wegmans, for instance, charges five cents for each paper bag packed for Philadelphia customers and 35 cents for each reusable bag packed for New Jersey customers. On March 6, GIANT instituted a 15-cent charge for paper bags.

Ali discovers that, despite the fees, she still saves money since she no longer makes impulse purchases at the store.

“You succumb to the marketing and discounts and start purchasing items you don’t need,” she said of in-store shopping. “Delivery allows me to maintain my concentration on what I want.”

Who shops online and what do they purchase?

As people of different ages and backgrounds utilize the service, there is no “typical” online grocery shopper. However, McKinsey research indicates that Gen Xers are among the most ardent supporters, with 46% of those polled identifying as belonging to this age group.

Jody Applebaum, who resides in Queen Village, purchases groceries online for her 98-year-old mother in Union, New Jersey, who cannot shop for herself. While she relies on it, Applebaum occasionally finds the service annoying.

“Most frequently, what I want to purchase does not appear on the internet, regardless of how I search,” said Applebaum, 65, of Queen Village. “For some time, I was unable to obtain celery since it was not growing. There was an error on the website, and I was unable to contact anyone for assistance. Not usually is it user-friendly.”

Grocers are constantly analyzing order accuracy, wait times, and product quality in response to these difficulties.

“As a firm recognized for its produce, our GIANT Direct team members undergo training to guarantee the selection process matches our standards,” said Daren Russ, vice president of GIANT’s omnichannel operations.

While Applebaum purchases and has delivered all of her mother’s groceries online, some clients prefer to select perishables personally. According to McKinsey, non-perishable commodities such as bakery products, canned foods, pasta, sauces, and cereals account for 35% of online grocery purchases.

Following in line is fresh and frozen meat, fish, and shellfish at close to 14%, followed by fruits and vegetables at 12.5%, and the remaining categories: non-food goods — paper products and cleaning supplies; drinks; medication and healthcare items — eggs and dairy products; and frozen foods, all below 10%.

Although online grocery shopping appears to be here to stay, it is not for everyone.

Ashley Primis, a resident of Queen Village, was a devoted Fresh Direct online grocery shopper for a decade until the firm departed the region last year. Since then, she has tried several services, but none measure up. Fresh Direct is an online-only company that sends goods straight from its own warehouse, in contrast to Instacart, which purchases at specific physical locations.

Other grocery businesses, according to Primis, 43, are striving to replicate their success.

She stated, “The shoppers are hit or miss.” “Some choose rotten fruit and others choose the incorrect thing. After getting my order, I wasted time requesting a refund or had to return to the store at the last minute to acquire an item they were out of. And it’s so costly. I eventually become so furious.”

Once the government implemented rigorous lockdown measures, including mobility restrictions, shopping became physically difficult.

As a result, purchasers were compelled to order things online via major delivery services.

Yet, consumers required rapid delivery, but e-commerce may take up to three days.

Increasing need for speedier delivery In essence, q-commerce refers to the speedier delivery of items to clients. Delivery may take two to three hours.

This is a dialogue between Capital Business and Glovo Regional Q-commerce Regional Director Marta Ayala Ruiz.

Please explain what q-commerce is.

Q-commerce, also known as fast commerce, is a kind of e-commerce that emphasises speedy deliveries, generally within one hour. Q-commerce began with food delivery, and it currently accounts for the majority of the company’s revenue.

The Q-commerce branch of Glovo offers users to order from their preferred supermarkets, neighbourhood retailers, and the Glovo Market using the Glovo app. Glovo Market utilises the most advanced in-store digital technology and committed resources to ensure that consumers receive their orders within 20 to 40 minutes.

At Glovo, we are changing the future of retail by being quicker than what e-commerce now provides, and we are not only about food, but also non-food businesses such as pharmaceuticals, bookstores, electronics stores, and clothing – practically everything.

Our objective is to provide everyone in the city with simple access to anything, and we’re just attempting to promote our multi-category value offer through rapid commerce.

Why did you, as an early adopter, embrace q-commerce?

The multicategory component of the business performed exceptionally well from the very beginning since clients could essentially request anything in a blank textbox and have it delivered. This demonstrates that from day one, Glovo’s value proposition is virtually anything and is not restricted to food. We are certain that food and restaurants will remain our key business for the foreseeable future.

Our aim and ambition have never been confined to a single vertical, but rather to whatever the users truly require.

According to statistics, what are the most popular q-commerce products?

This continues to evolve in Kenya, although about 40 per cent of Glovo Kenya’s total revenue comes from q-commerce. This demonstrates that there is a strong demand and favourable impact, and it reaffirms that we are delivering on our value promise. We are forming strategic alliances with our leading merchants and developing our own mini fulfilment centre (MFC).

To date, we have built three micro fulfilment centres (MFC). Glovo is interested in leveraging its advanced affordability value proposition and supplying inexpensive fresh and consumer-packaged products (CPG) to lower-middle-income earners.

With the passage of time, we’ve witnessed a development, and currently, the most popular product on our site is fresh produce, which means that Glovo is a viable alternative for purchasing household necessities. Thus, we see that fresh and necessities remain the most popular products currently.

How many firms have you enrolled in q-commerce?

Nowadays, we work with hundreds of businesses in addition to leading retailers such as Naivas and Carrefour. We are also cooperating with medium-sized merchants and small businesses that are specialised in particular sectors, such as stores that supply exclusively fruits, vegetables, beverages, and flowers.

To enhance company sales, we’ve broadened our business strategy to target both large partners and merchants and small businesses. In 2022, we will launch campaigns with small, medium, and micro businesses in the food and quick-service industries since it is one of our primary pillars to help them expand and have a positive social impact in all of the areas where we operate.

What technologies have you adopted to ensure the success of q-commerce?

When it comes to product distribution, it is not all that unlike the rest of our applications; we use the same technology and methodology. Our technology enables a highly efficient logistical strategy. This is one of the primary aspects that ensure our delivery is quick or as quick as our users want. It is also how we effectively manage our fleet or the fleet of drivers cooperating with worldwide partners, as well as the algorithm behind this business model.

The manner in which we connect with our partners is of utmost importance to us. We strive to onboard our partners from the start inside a framework of operational excellence by teaching and supporting them on a regular basis so that they know how to manage those deliveries correctly.

They understand what delivery entails, and in addition to focusing on their offline business, they also use and emphasise their online presence.

Apart from Nairobi, do you provide q-commerce in other cities?

We do in all the places where we are now present in Kenya, and we do feel that there is a possibility to develop further. We anticipate that rapid commerce will play an even larger role in Nairobi, where there are more orders and where user behaviour may change.

What problems does q-commerce now face?

Obviously, there are quite a few obstacles, and I believe there are obstacles everywhere because our aspirations are so lofty. We are working really hard to ensure that the availability of our items is constantly near one hundred per cent. And we are aware that this is the greatest obstacle, given how offline businesses operate as well. Even if you go to the store personally, you may not find all the things you’re searching for, therefore we’re trying to increase the availability of these items so that the user experience is faultless. And it would be our current top focus.

Are you also considering expanding into other cities?

We are also searching for opportunities to expand, and in 2023 we will be studying various options to determine what opportunities are available while ensuring that we thrive in the places where we are already present and are 100% solid.

The expansion will undoubtedly be one of our growth levers. We intend to serve the greatest number of Kenyans possible.

It is intended that the renovation of the Brunswick Shopping Centre in Scarborough into a multiplex theatre would stimulate the town’s nighttime economy.

The venue’s change of use was granted by planners last week, paving the way for a multimillion-pound redevelopment project.

Plans are for the transformation of the commercial centre into a movie, leisure, and retail complex that might include restaurants and bars.

Councilwoman Jane Mortimer believes it will benefit other small merchants in the city.

Scarborough Group International, a prominent property regeneration expert, proposed the multimillion-pound makeover proposal after acquiring the centre in September 2021.

Plans indicate that the cinema will occupy up to 2,700 square metres of the centre’s about 14,000 square metres.

The theatre is suggested to be open from 9 a.m. to 2 a.m. on Friday and Saturday evenings, and until 11 p.m. Sunday through Thursday.

A cinema operator has not yet been announced, at which point the cinema’s size and number of screens will be determined.

Local councillors on the borough’s [planning committee] supported the change of use for the building during a meeting last week, with some stating that the shift is positive for the town’s nighttime economy.

Among them is Councilwoman Roberta Swiers

Since its opening in the 1990s, the “largely deserted” Brunswick shopping mall has suffered a fall in commerce and tenants, and councillors hope the proposal would “revitalise” the town centre.

The leader of Scarborough Council, Cllr. Steve Siddons, stated to the Local Democracy Reporting Service following the decision:

“I am ecstatic, and I believe that this decision was made at the perfect moment.

“Like everyone else, we’ve experienced a downturn in retail and town centre activity, and this is what will bring it back, especially the early evening economy, which has been sorely absent.”

According to recent research from Finder, Australian households are spending hundreds of dollars more year on food.
According to Finder’s Consumer Sentiment Tracker, the average Australian family spent $185 per week on groceries in February 2023, up $37 per week from February 2022.

That’s a staggering $1,924 rise per home over a year or an additional $18,8 billion on a national scale.

One-third of Australians (33%) visit the store every few days, but the majority (53%) shop once each week.

Roughly one-tenth of Americans (9%) shop for groceries every two weeks, while only 1% are able to last the entire month. The study indicated that 2% of Australians purchase food on a daily basis.

Sarah Megginson, a money expert at Finder, stated that the rising cost of living has a significant impact on food expenditures.

“Families are enduring really difficult circumstances, and rising food prices are an additional strain.

Australians are forced to alter their shopping habits and locations in order to put food on the table.

In March, 43% of Australians ranked their grocery bill as one of their top three most stressful costs, the highest level since April 2019, when Finder’s Consumer Sentiment Tracker began.

About half (48%) of individuals questioned prefer to shop at Woolworths, followed by Coles (39%) in second place.

10% of consumers typically shop at Aldi for home necessities, compared to 2% who shop at their neighborhood IGA.

Megginson stated that there are strategies to reduce your food bill.

“Use a shopping list to avoid spending money on unnecessary items. If possible, do your grocery shopping an hour or two before the supermarket shuts, when meat and poultry are up to 80% off.

“Stock up on necessities while they’re on sale and check costs online for expensive products such as laundry detergent and pet food.

“This is also an excellent time to enroll in supermarket loyalty programs. Since you’re going to purchase food anyhow, you might as well get points. These points may subsequently be redeemed for cash back or converted into frequent flier miles,” Megginson explained.

A Past Finder study indicated that 9% of Australians had stolen things from the supermarket at the self-checkout, while 10% have intentionally lied about what they scanned at the self-service checkout.

It is no wonder that the world has been watching and waiting for China to reopen its borders after over three years of Covid-19 restrictions.

Now that China has begun to remove travel restrictions, Sabre has analysed its shopping and booking data to determine the impact of the country’s openness until February 9, 2023, both domestically and internationally.

Important results after announcements of reopening on December 26, January 8, and January 20 include:

• A large increase in shopping-related questions and requests, especially from the outbound tourist sector

• High demand for travel among Chinese tourists notwithstanding high flight costs, with peaks in January and February exceeding 1.5 times the pre-pandemic levels.

• Demand exceeds supply, with Chinese airlines dominating capacity expansion

• New booking patterns imply confidence in long-term travel

An increase in search and reservation requests

Sabre’s shopping insights found that demand for inbound and outgoing China routes increased during the week of 26 December, when China initially announced plans to end quarantine for foreign visitors, and again on 8 January, when mainland China reopened sea and land connections with Hong Kong.

After the announcements, weekly searches for China-related routes (including the Special Administrative Regions of Hong Kong and Macau) have increased steadily, with average weekly searches in the first five weeks of 2023 through February 5, 2023, being 78% higher than average weekly searches in the fourth quarter of 2022.

Immediately following the news at the end of last year that China will reopen its borders, interest increased. On January 8, China opened sea and land crossings with Hong Kong and ended the requirement for incoming travellers to undergo quarantine, resulting in another immediate increase in search and shopping requests, as Chinese travellers, many of whom had been unable to visit family for years due to China’s previous zero-Covid policy, rushed to make reservations.

The celebration of the first Chinese New Year without travel restrictions spurred travel interest in the area, with high levels of outward, inbound, and domestic travel suggesting robust travel demand and trust in China.

It was stated on January 20 that the prohibition on group travel will be lifted on February 6. The average number of bookings for the preceding two weeks increased by 60 per cent between January 30 and February 5, compared to the previous two weeks.

High outbound reservations but stagnant incoming tourists.

Already, the reopening of China is proving to be a major boon for tourist recovery and a potential driver of economic expansion in the Asia-Pacific region. In general, outbound travel has returned more quickly than incoming travel to the region, with outbound reservations accounting for 43.5% of 2023’s total travel through February 9, compared to 37% during the same period in 2019.

As of February 9, Japan, Thailand, and Korea are the top three destinations for Chinese outbound travel in 2023, with Korea moving from fifth place in 2019 to third rank. Bookings for the United Kingdom, Thailand, and the Philippines have rebounded the quickest compared to the same time period in 2019. Indonesia, a leading outbound destination in 2019, fell out of the top 10 to be replaced by the Philippines.

During the epidemic, it was stated that Indonesia slowed down the promotion of their location to Chinese tourists, which may have affected Indonesia’s place on the list. Australia’s slip to ninth rank may have been influenced by restrictions placed on travel from China.

Yet, although outgoing travel is seeing a robust recovery, inbound travel appears to be hampered by limitations in place.

Long-awaited reunions feed incoming reservations.

Taiwan, the United States, Thailand, Korea, the United Kingdom, and Canada are the top sources of inbound travel to China so far in 2023, with Thailand, the United Kingdom, and Canada bouncing back the fastest in terms of recovery as of February 9.

Given that inbound passengers must possess a legal permit for a job, study, or reunion, a diplomatic visa, or a legitimate business card, it is conceivable that one of the primary reasons for inbound travel during the protracted lockdown period is for long­ anticipated family reunions. This is consistent with demographic data released in 2021, which indicated that Thailand, Canada, and the United Kingdom were home to the greatest number of foreign nationals.

From 2019 to 2023, the proportion of outbound trips lasting more than two weeks will increase from 14% to 21%. (through February 9). This may be attributable to travellers visiting relatives deciding to maximise their vacation after extended separations.

Long-term travel assurance and novel reservation practices.

Sabre data demonstrates the possibility for long-term travel confidence, despite the fact that there is still a lot to go until all travel restrictions are eliminated for travel to and from China. Booking windows may be a significant confidence measure since passengers are more likely to book long in advance if they are certain in their trip intentions.

As of February 5, 33% of all inbound bookings and 43% of all outgoing bookings were made more than two months in advance, indicating likely anticipation that travel restrictions would continue to loosen over the following two months and beyond. Just 21% of outbound and 14% of inbound travel bookings were made within two weeks, compared to 37% and 30% for the same time in 2019.

Compared to 2019, when there were more last-minute bookings, travellers appear to be reserving longer in advance today. This may be related to the fact that tourists have become accustomed to pre-planning their journeys, as a result of the Covid-19 epidemic, or to the fact that capacity for Chinese routes has not yet recovered to pre-pandemic levels, leaving fewer seats available for last-minute reservations.

Bookings are also gradually returning to pre-pandemic levels, with outward travel reservations made by February 9 for travel in the first week of April surpassing 70% of all passenger reservations made by February 9 in 2019.

Demand exceeds supply, therefore ticket prices stay high.

Comparative to the first quarter of 2019, airline capacity on international flights to and from China (including Hong Kong and Macau) has returned to around 27% as of February 6, with a projected rise beginning in April.

Presently, the majority of the scheduled capacity is provided by airlines from Greater China, Japan, Korea, and Taiwan. More than two-thirds (65%) of total international route capacity is held by Chinese carriers, up from 60% in 2019. Global (non-Chinese) airlines have yet to build considerable capacity for China, and SEA airlines control just 12 per cent of international capacity for China, compared to 16 per cent in 2019.

With what seems to be a delayed capacity recovery, Sabre ticketing data suggests that ticket prices for the main Greater China incoming and outgoing routes are estimated to be higher than in 2019, with ticket sales growing since September 2022. Since airlines have begun to expand capacity, fares have decreased to around 1.5 times pre-pandemic levels in February, down from 2 times in January. But, prices are anticipated to stay elevated until capacity has been fully restored.

Since demand has outpaced supply, resulting in increased rates, travellers look eager to fly and are demonstrating reduced price sensitivity, potentially as a result of the “revenge travel” phenomena caused by the lengthy lockdown.

Sabre’s Senior Vice President of Airline Global Sales, Darren Rickey, remarked that the speed with which Chinese tourism began to recover following the announcement that restrictions will be eased illustrates the significant demand for both inbound and outward travel. “We are aware that airlines in China have been preparing for reopening by ensuring they have the assistance of Sabre’s superior technology to swiftly adapt to changing industry conditions, capitalise on recovery trends, and generate their own development momentum. We are eager to see what the remainder of the year has in store for Chinese tourism.”

To recover the trust of debt and stock investors in Casino Guichard Perrachon SA, the French retailer must minimize complexity and cut borrowings. Yet, Thursday’s announcement of a merger between its French retail businesses and those funded by billionaire Xavier Niel does neither.

In reality, the company’s ambitions to form a joint venture with Teract SA, the owner of Jardiland garden shops, further complicate matters.

Little wonder the French retailer’s stock dropped as much as 7 percent on Friday before rebounding marginally. Bonds maturing the following year reached their lowest level since October.

According to the terms of the transaction, Casino would combine its French retail holdings, including the Monoprix and Franprix chains, with Teract’s garden, pet, and food shops, which Casino will control, to form a new firm. InVivo, a stakeholder in Teract, will run a separate firm that will oversee the distribution of local food and agricultural goods.

Teract owes its origins to a special purpose acquisition business founded by Niel, Moez-Alexandre Zouari, and Matthieu Pigasse. Niel was a longstanding Casino partner, while Moez-Alexandre Zouari was a banker. Last year, they combined their blank-check company with InVivo Retail.

The casino will be able to utilize Teract’s brands, which include the Boulangerie Louise baking business, to cover excess space in its locations. As supermarket shopping switches online, it is not alone in seeking a solution to an excess of selling spaces. It is difficult not to conclude that this is another instance of Casino chairman and CEO Jean-Charles Naouri selling off the royal jewels to preserve cash and reduce debt.

While investors are justified in questioning Casino’s and parent company Rallye SA’s capital structures and huge debt burdens, they cannot criticize Naouri’s instinct on how customers want to purchase — establishing outlets near to where people live and supplementing them with online operations. Monoprix and Franprix continue to be reputable, Paris-based stores.

Given Casino’s debt levels — borrowings in the French business decreased to €4.5 billion ($4.8 billion) at the end of 2022 from €4.9 billion a year earlier, but still, dwarf the company’s market value of €900 million — a merger or investment in the French food businesses appeared increasingly probable. Niel is opportunistic, therefore it is clear that he recognizes the worth of Casino’s assets, and given Casino’s leverage, he has the upper hand.

Upon completion of the transaction, Casino will hold 85% of the merged businesses, while Teract will own 15%.

But, Casino’s stake might decline more. Casino and Teract are in discussion with possible investors about raising €500 million for the merged company. It will also be listed, which may allow Casino to sell a portion of its investment to reduce its debt.

This makes the structure of the Casino even more intricate. For the Casino to benefit, the new firm will have to pay a dividend to its parent. This appears to be the case with Casino and its parent Rallye. It relies on Casino’s cashflows to cover its own debt, despite the fact that Casino has not paid dividends for a number of years.

Casino has €1.2 billion in maturing bonds in 2019. It said last week that it was considering selling a portion of its remaining ownership in the Brazilian retailer Assai, which is valued at around $600 million, while also disposing of assets worth €400 million in France.

Provided the agreement with Niel and eventual listing go through, Casino will have another asset it may use to reduce its debt. Yet based on the reactions of investors and bondholders, this may come at a high cost.

Additional Bloomberg Opinion:

• Crypto Brothers Reset Their Rolex Watches: Andrea Felsted

• Timothy L. O’Brien’s Crash Course: Cryptocurrencies Against Reality

• Cryptocurrency’s Detritus Will Draw Hedge Fund Raptors: Lionel Laurent

This column does not necessarily represent the editorial board’s or Bloomberg LP’s and its owners’ opinions.

Andrea Felsted is a columnist for Bloomberg Opinion covering consumer products and the retail sector. She was previously a correspondent for the Financial Times.