International News - Casino told to rework foreign plans

French food retailer Casino has been urged to dispose of underperforming overseas businesses in markets including the US, Poland and Taiwan.

The call came from analysts at broker JP Morgan, who say Casino has struggled with some of its foreign ventures.

Retail analyst Jaime Vazquez states in a note: 'We believe there are several countries where Casino is unlikely to create value in the foreseeable future. Therefore, we believe Casino should reconsider its strategy in these countries - US, Poland, Taiwan and Argentina - including the possibility of withdrawal.'

Casino has 220 stores in the US, 75 in Poland, 45 in Argentina, 12 in Taiwan, and has invested EUR 5 billion (£3.42 billion) in overseas expansion since 1996.

According to Vazquez: 'A significant part of value destruction is because of currency devaluations in Latin America, but also strong competition, lack of local scale and the high prices of some acquisitions.'

Vazquez believes Casino may also come under pressure in its home market, where it is the fifth biggest player.

Casino was to announce full-year results as Retail Week went to press.