2023-11-06 18:43:00
Last March, Delhaize announced that it wanted to sell off its 128 self-managed stores in Belgium and entrust them to independents. So far, fifty-one supermarkets have found potential buyers. But under what conditions? “These contracts are totally unbalanced and restrictive for the self-employed,” denounces Pascal Niclot, president of Aplsia, the French-speaking professional association of independent self-service in food. Note that Mr. Niclot himself manages seven Delhaizes as an independent and is therefore affected by the changes to the Lion brand. “You should know that the contracts proposed by Delhaize will not only be valid for the new branches, but also for all self-employed people whose current contracts, lasting a maximum of nine years, will expire,” explains- he. “Personally, I don’t know if I’m going to re-sign with Delhaize. We’ll see. But they have to change the terms of this contract. I would like to be able to keep my employees, but we won’t be able to pay them. We will have to make changes. layoffs. With the new conditions proposed by Delhaize, it will be impossible to keep all our staff. The unions are right regarding that.”
Mr. Niclot evokes a “radical change” compared to the conditions previously offered by the brand. “This new affiliate contract looks exactly like disguised franchising, a status which gives much less freedom and is more restrictive for the independent. Delhaize also says that it will support us, help us in the event of difficulties, but this is not written anywhere in the contract. We need these guarantees. The words fly away and the writings remain”.
“The future affiliate’s negotiation margin is zero”
However, Aplsia says it has sounded the alarm with Delhaize, but without success. “Management sees us as a union, which we absolutely are not, and refuses to discuss. It’s a shame because we might have been a partner, looking for new affiliates. We don’t want war, quite the contrary, but Delhaize doesn’t see it like that.” The president mentions “abusive” clauses in the contract proposed by Delhaize, with a percentage requested on turnover and, ultimately, prices which will be imposed on affiliates. “Delhaize wants its butter and its money. All the risk lies with the independent. The future affiliate’s negotiating margin is zero”.
How can we explain then that nearly 40% of the stores “abandoned” by Delhaize have already found buyers if the takeover conditions are so bad? “You will notice that these stores have been largely taken over by internal Delhaize staff. They may have information and figures that we do not have as external independents. To us, the brand only gives us what it wants to give, particularly in terms of store profitability.” Have some buyers been scammed? “I don’t like that term. But I think some people were too enthusiastic regarding the signing. The speech is tempting for a former employee to whom we explain that he will be able to become his own boss, declare expenses, etc. Even if he will have to work more in compensation. I don’t have any problems with that. But we tell independents, be careful before signing this contract, analyze it carefully. Aren’t you going to become employees in disguise? Are you going to be profitable one day? I’m never going to tell them not to sign, that’s not my role, but I warn them”.
“The Netherlands and Belgium are very different”
According to Aplsia’s legal analysis, Delhaize’s contracts are at the “limit” of legality. “The problem is that there is no franchise or affiliation law. To protect the independent, we will need a more formal legal framework and this is what we are urgently asking of the political world.” According to Mr. Niclot, the mentality has changed within the group since its merger with the Dutch of Ahold. “Before, our interlocutors were large traders. Now, we are faced with shareholders who undoubtedly demand more guarantees. But the Netherlands and Belgium are very different, both from the point of view of economy, unions and consumers. Delhaize must take this into account if it wants to continue to be successful in Belgium”.
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