2024-10-30 12:33:00
According to The Letterit is indeed all of the CSEs (social and economic committee) of the different bodies of the group which were convened. This indicates that the possible announcement would concern different structures, which is in line with a major reorganization suggested during the announcement of the half-year results in July. The agenda would mention, according to La Lettre, “ an update on the company’s situation and its projects “. The northern distributor confirmed to us the convening of the various CSEs November 5th.
After disappointing performances in 2023, the ELO holding company (Auchan, New Immo, Oney) published declining results for the first half of 2024 at the end of July. The net result stood at – 981 million euros compared to – 215 million euros. euros a year before. “ The strong strategic plan calls for a lot of radicalism and courage », Estimated Antoine Grolin, CEO of ELO. Guillaume Darrasse, general manager of Auchan Retail and president of Auchan Retail France, spoke, “ voluntarism and determination ».
A “more efficient” organization
Auchan has already announced an average reduction of 25% in sales space and a hypermarket park mainly made up in the future of stores below 10,000 m². “ We are aiming for a target size of 8,000 m²indicated Guillaume Darrasse. In total, there will be 300,000 m² less by 2027, including 50,000 m² from 2024. »
As early as July, unions feared the loss of thousands of jobs in stores. Because the northern distributor also plans to reposition itself on prices, in particular thanks to its purchasing partnership with Intermarché. He also wants offer the right offer » with a more understandable choice, develop the franchise (by doubling the number of franchised stores by the end of 2024, knowing that there were 321 at the end of 2023) and organize itself more efficiently, particularly in its IT and Data functions . Which implies changes in structures and organizations.
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**Interview with Guillaume Darrasse, General Manager of Auchan Retail**
**Editor:** Thank you for joining us today, Guillaume. With the recent announcement of the convening of all social and economic committees on November 5th, what can you share about the purpose of these meetings?
**Guillaume Darrasse:** Thank you for having me. These meetings are a significant step in our ongoing efforts to reshape Auchan’s future. They aim to provide an update on our current situation and outline our strategic projects moving forward. This is crucial as we navigate through a challenging market.
**Editor:** There seems to be a clear acknowledgment of organizational changes. Can you elaborate on what these changes will entail and how they will impact the company’s structure?
**Guillaume Darrasse:** Absolutely. As we discussed during our half-year results in July, we are initiating a major reorganization. This includes a planned reduction in sales space by about 25% and a shift towards more compact hypermarkets, specifically under 10,000 m². Our goal is to create a “more efficient” organization that can adapt quickly to changing consumer demands.
**Editor:** It sounds like a bold strategy, especially considering the disappointing financial performance in recent years. How do you plan to instill confidence in your employees and stakeholders?
**Guillaume Darrasse:** It is indeed a challenging time, and we acknowledge the past difficulties. However, we believe that this strategic plan embodies both voluntarism and determination. We are committed to a transparent process and will involve all stakeholders in discussions about the future. Our aim is to not just recover but to thrive in the evolving retail landscape.
**Editor:** You’ve mentioned the necessity of “radicalism and courage” in this transformation. How do you expect these elements to drive Auchan’s recovery?
**Guillaume Darrasse:** Change is never easy, but it is essential for our survival and growth. Embracing radical ideas and having the courage to implement them will help us remain competitive. This means being willing to rethink our business models and operational strategies in favor of innovation and efficiency.
**Editor:** Thank you, Guillaume, for sharing your insights. We look forward to seeing how these plans unfold in the coming months.
**Guillaume Darrasse:** Thank you. We are excited about the future and are determined to make these changes work for Auchan and our customers.