The distributor Auchan, long the flagship of the Mulliez galaxy, presented, on Tuesday, November 5, to the representatives of its employees in France, a draft large-scale layoff plan, with 2,389 job cuts. , as learned by the management of Agence France.
In detail, Auchan, which employs around 54,000 people in France, plans to cut 784 positions at its headquarters and 915 positions in its stores. It provides for the cessation of direct home delivery activity, which would mean the elimination of 224 jobs. A dozen unprofitable points of sale are expected to close (466 positions eliminated), including three hypermarkets in Clermont-Ferrand (Puy-de-Dôme), Woippy (Moselle) and Bar-le-Duc (Meuse), as well as like a supermarket. in Aurillac (Cantal).
On Monday, when the figure began to circulate, Force Ouvrière (FO) “retail” union delegate Franck Martinaud expressed alarm to AFP: “We have already had numerous PES [plans de sauvegarde de l’emploi], but none exceeded 1,000 positions. If it’s that number, it’s huge. » “I know we are not in an easy economic time, but having figures like that…”Fabien Alliata, union representative of the CFDT central services, also reacted on Monday.
Various accumulated disabilities
On Sunday, the specialist in the large distribution sector, Olivier Dauvers, explained in particular that “the difficulties” from Auchan in France “have been covered for years by international activities”. But since the Russian invasion of Ukraine, the very profitable Russian subsidiary of the distributor no longer plays this role and in recent days the press has been talking about the sale of this Russian subsidiary.
Since the bankruptcy of the Casino Saint-Etienne group, where a PSE is also underway that could affect more than 3,000 jobs, Auchan is regularly cited as the country most affected by large-scale food distribution. The group has several obstacles in France, although it has financially solid shareholders, such as the Mulliez Family Association (AFM), also owner of the lucrative Leroy Merlin and Decathlon.
Firstly, Auchan’s market share – 9.1% at last count, far behind E.Leclerc (24.1%), Carrefour (21.4%), Mousquetaires-Intermarché (17.4 %) and Cooperative U (12.2%) – leaves you less room for maneuver in your negotiations with agro-industrial suppliers. To gain more clout, Auchan joined forces with its competitor Intermarché to buy together in an alliance that lasted an unusually long ten years.
Furthermore, the group, which owns its stores, with very few franchises, suffers from competition from E.Leclerc, Intermarché and Coopérative U. These groups of independent companies reduce operating costs to a minimum and the conditions of social services are generally less valuable . there. This generally allows these stores to sell their products at more competitive prices.
Another weak point of Auchan: the group has historically opted for the hypermarket format, the largest stores, but which is less popular today. During the first six months of 2024, its Elo holding company suffered a net loss of almost one billion euros. Last year, it suffered a net loss of €379 million with sales falling, while inflation had boosted sales of most of its main retail competitors.
