Carrefour offloads another 39 French stores
Carrefour is offloading 39 French – often loss-making – hypermarkets and supermarkets to independent operators in a bid to cut operating costs. Unions protest to what they call is a restructuring in disguise.
Carrefour is transferring an additional 15 hypermarkets and 24 supermarkets in France to independent operators, involving over 4,000 employees, LSA reports. This marks the eighth wave of such transitions since 2018, with nearly 350 stores, including around 100 hypermarkets, now under the “location-gérance” model.
That model is a hybrid between company-operated stores and franchising. Carrefour retains ownership of the property or lease and the business, while the manager is responsible for controlling costs and restoring profitability. Often this approach targets underperforming stores.
This approach has led to increased profitability, with personnel costs decreasing from 12 to 10 % of turnover on average. Since 2018, no French hypermarkets have closed, and stores under “location-gérance” now contribute to about half of Carrefour’s operational results.
However, trade unions are protesting, viewing this as a restructuring in disguise: it diminishes employee wages and benefits such as meal vouchers, health insurance, and voluntary Sunday work. They are also calling for measures against operators who do not respect workers’ rights.
Retail Detail
Related news
Picnic joins forces with Intermarché in France
In France, Dutch online supermarket Picnic is swapping its current…
Read more >Carrefour Polska Launches New Pricing Policy For Essential Products
Carrefour Polska has initiated a new strategy, effective from March,…
Read more >Solution to curb product loss
French company Groupement Les Mousquetaires, which represents brands such as…
Read more >Related news
Focus on supporting sustainable food systems: Nestlé’s joint value creation summary published
Nestlé is committed to providing sustainable, balanced and affordable food…
Read more >The European Commission has proposed to strengthen the competitiveness of the EU wine sector
The European Commission is proposing measures to improve the competitiveness…
Read more >Jägermeister Orange: an ice-cold novelty with the aroma of Sicilian orange
1400 hours of Sicilian sunlight, 56 herbs and the aroma…
Read more >