Carrefour’s Transfer of Stores to Lease Management in 2024: Impact on Employees and Market Share

2023-10-21 06:01:00

the essentials Carrefour will transfer new stores to lease management in 2024. 16 hypermarkets and 21 supermarkets will change status next year. An approach launched several years ago for stores in difficulty.

If E.Leclerc is in excellent health with 24.1% market share in the latest P3 Kantar 2023 survey, Carrefour is doing less well. With a market share of 10.3%, the brand is in 4th place behind Intermarché, 2nd, and Super U in 3rd place.

For several years, the group has chosen to give a special status to its unprofitable stores: rental management. A system which consists of Carrefour entrusting the operation of the store to a third party while remaining owner of the business. The Carrefour brand is maintained.

Carrefour has decided to sell 37 stores, 16 hypermarkets and 21 supermarkets, to buyers in 2024. Around 4,000 employees are affected. This development was announced by management to staff representatives on Friday October 20. The hypermarkets concerned are located:

West : Alençon – Cholet – Guingamp – Nantes-Beaujoire – Romorantin
South West : Lormont
Ile-de-France : Rungis Belle Epine – Gennevilliers – Sartrouville
Nord : Douai-Flers – Fourmies – Maubeuge – Saint-Martin-au-Laërt
Great East : Epinal
Paca : Marseille le Merlan – Avignon

Concerning the Carrefour markets, it is in Hauts-de-France that the group will sell off the greatest number of stores. Only one supermarket is on the list in Occitanie: in Crès near Montpellier.

A “dismantling” for the CGT

The Carrefour group has decided to place its stores in difficulty under rental management from 2018:

In 2018, 34 stores (5 hypers and 29 Market) In 2019, 36 stores (5 hypers and 31 Market) In 2020, 67 stores (12 hypers and 55 Market) In 2021, 47 stores (10 hypers and 37 Market) In 2022 , 43 stores (16 hypers and 27 Market) In 2023, 41 stores (16 hypers and 25 Market)

For the CGT Carrefour, the observation is clear: CEO Alexandre Bompard “continues the dismantling of the group”. Since his arrival, 305 stores including 80 hypermarkets have left Carrefour. Or 20,000 employees according to CFDT calculations. In the South-West, the Carrefour hypermarkets in Portet-sur-Garonne, Cahors and Auch are already under lease management.

Read also :
Carrefour Portet-sur-Garonne will move to rental management

“Recovery of store performance”

For Carrefour management, “the choice of rental management is the choice to avoid the closure of hypermarkets in difficulty”. She believes that rental management has “proven its ability to turn around the performance of stores with significant losses, thanks to local management and more agile management by the tenant-manager”.

Olivier Dauvers, specialist in mass distribution, explains that his blog Web Grande Conso that there is a double effect: “outsourcing the sources of losses (this mechanically improves the result) and commercial relaunch with an independent who is directly interested in the progress of the business, therefore more involved”.

The Carrefours of Portet-sur-Garonne, Auch, Cahors and Narbonne were taken over by the same man: Olivier Lavielle, CEO of the Albert group. To relaunch the Portet hypermarket, he focused on DIY. The number of departments increased from 2 to 9 in summer 2022. “In a store of such a large size, food cannot be developed infinitely. To make it a destination store, we decided to emphasize DIY. Now, customers come from far away,” he explained to the trade magazine LSA.

Employees will lose

Seeing your store go into rental management for the employees concerned means losing 2 months of remuneration per year on average and losing company agreements. The agreements will have to be renegotiated at the local level.

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