Delhaize management announced this week that it wants all of its stores to become franchises. Reacting to this announcement, the staff said they were going on the offensive by launching a petition to keep the stores under their own management. The discontent continued this weekend: a hundred supermarkets were still closed this Saturday due to staff actions.
On the set of the Guest of Pascal Vrebos, Prime Minister Alexander De Croo spoke this Sunday on this decision. “The rights of workers must be preserved. Delhaize said it would do so, so there are enough guarantees in relation to that. I find that there is a tendency to demonize franchise stores. I am not d I agree with that. I know dozens of them in the region where I live, with motivated people who like to work there.”
But what are the differences between the different supermarkets in the group?
In Belgium, Delhaize has 764 points of sale. 636 stores are franchised under the names AD, Proxy and Shop and go. On the other hand, 128 supermarkets are managed by the group and are affected by the decision that management announced today. “People are a strength of Delhaize”said Xavier Piesvaux, CEO of Delhaize Belgium. “What these self-managed stores lack is the dynamism brought by entrepreneurship, local roots, reaction to local customers and the additional service that we can provide.”
Many differences
These group stores are less profitable and are losing market share, unlike franchise stores. These offer different schedules with openings on Sundays and public holidays for example, often smaller surfaces with less inventory, more flexible staff, in particular students, and more efficient independent directors.. “They live in these areas”explained Xavier Piesvaux. “They grew up in these areas. They make sure that shopping options are perfectly aligned with customer expectations. And they have a way of operating their store that is simpler and more efficient.”
Today, Delhaize supports more than 23,000 people, including 9,000 in the group’s stores, which will have to change hands tomorrow. With guarantees according to management. “The employment contract of each employee is preserved”, stated the CEO. “If he does not work on Sunday, there is no obligation to work on Sunday. Our affiliate partner will have to find solutions if he wishes to open on Sunday.”
Management does not anticipate any store closures. This transformation plan will be spread over several months or even several years.
“Fear of unions partially justified”
Pierre-Alexandre Billiet, economist and CEO of Gondola, a group specializing in the distribution sector, analyzes the situation. “The fear of the unions partially justified”, he said. “Delhaize still gives guarantees. But the change is so important, unheard of in Belgium, that we will have to see how it will evolve in the days and weeks to come.”