Primo (French)

Published 07 Jan 2002
Reference 4766
Topic Marketing
Region Europe
Summary

The case describes the outcomes of the acquisition of Prisunic by Monoprix, with the financial help of Casino, one of France’s largest supermarket companies, which also becomes a significant shareholder of the merged company. This operation should lead Monoprix to the critical mass in terms of cost efficiency. It should also permit cross-fertilization of Monoprix’s strengths in food and Prisunic’s forte in fashion clothing. However, merging the two corporate cultures is not easy and multiple organizational and operational problems (especially in information systems) need to be solved.

Teaching objectives

The Primo case is a “natural” follow-up to the Monoprix case. It illustrates the financial game that has been played by Monoprix in order to solve one of its “headaches” - the insufficient cost efficiency. However, it challenges the students / participants on topics such as: how to build a successful corporate culture which integrates the strengths of both companies, how do you finetune your retail concept(s) given the new portfolio of stores, how far can you, or should you, depart from your original concept?

Keywords
  • Retailing
  • Variety store
  • Merger