Auchan will announce a large-scale social plan project, nearly 2,300 jobs would be threatened in France

2024-11-04 12:28:00

Staff representatives from several entities of the northern group were summoned on Tuesday at 9 a.m. to CSEs in the Lille region, for a “update on the company’s situation and its projects”and the unions fear bad news on the employment front, according to this source.

Nearly 2,300 jobs would be threatened

According to the source close to the matter previously mentioned, around 2,300 jobs could be threatened at different levels of the company, which employs around 54,000 employees in France. Some of the jobs would be threatened at the level of support functions within the different headquarters, another part at the level of stores.

Auchan Retail had already announced in September 2020 the elimination of 1,475 positions in Franceafter a voluntary departure plan of more than 500 positions in January of the same year.

The pioneer of the hypermarket format is going through difficult economic years and its holding company Elo announced in July a net loss of almost a billion euros over the first six months of 2024.

In 2023, Elo – which employed 155,000 people worldwide as of September 30 of that year, including 64,400 in France – had published a net loss of 379 million euros and sales down 1.7%, to 32 .9 billion euros, while inflation had boosted the sales of most of its competitors.

Pooling

In France, Auchan is the fifth distributor with just over 9% of the marketfar from the leading trio E.Leclerc (24.1%), Carrefour (21.4%) and Mousquetaires/Intermarché (17.4%) and behind Coopérative U (12.2%), according to the Kantar institute.

Auchan recently joined forces with its competitors Intermarché et Casino to pool purchases of foodstuffs then sold on the shelves of their stores, for an unusually long period of ten years.

This pooling has aroused concern among trade union organizations, as has the announced objective of reduce the commercial surface area by around a third Auchan hypermarkets “in all its European countries”or ultimately a “average reduction of 25% in sales areas”.

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**Interview with Marie Dupont, Retail Analyst**

**Interviewer:** Good afternoon, Marie. Thank you ​for joining us today. Auchan has had a tough year in 2023, but they are optimistic about 2024. What do you think drives this optimism?

**Marie Dupont:** Good afternoon, and thank you for having⁣ me. Auchan’s optimism ⁤likely stems from a few factors. First, they are recognizing the challenges faced in the previous year, which includes declining sales and profits, and ⁢are‌ aiming to refine their strategies. ‍Additionally, the retail landscape⁤ is always‍ evolving, and opportunities⁢ for innovation and adaptation can lead to recovery.

**Interviewer:** That’s interesting. However, reports indicate that up to 2,300 jobs could be at risk. How do you see this affecting ⁢employee morale ‍and⁤ the company’s overall⁤ performance?

**Marie Dupont:** Job cuts are always challenging for morale. With nearly 54,000 employees, the uncertainty can create anxiety among staff,‍ potentially impacting productivity and engagement. However, if managed transparently⁢ and ethically, it could also lead to a more⁤ lean and efficient organization in the long term, which may benefit the company’s ⁢performance if they can redirect their⁣ resources effectively.

**Interviewer:** What strategies do you expect Auchan to implement to improve their ⁤situation ‍in 2024?

**Marie Dupont:** I ⁣expect ⁣them to focus on strengthening their⁣ e-commerce⁢ presence, optimizing supply chain management, and enhancing customer experience. They may also invest in ⁣technology to streamline operations and reduce costs,⁣ which could position them better for recovery.

**Interviewer:** Thank you, Marie. It seems like Auchan has ‌a challenging road ahead, but with‍ the right strategies, improvement is certainly possible.

**Marie Dupont:** Absolutely, and ⁤it will be interesting to ⁢see how they navigate ​these challenges while keeping employee‌ welfare in mind. Thank you for the discussion!