Carrefour is offloading 39 French – often loss-making – hypermarkets and supermarkets to independent operators in a bid to cut operating costs. Unions protest to what they call is a restructuring in disguise.
Eighth wave
Carrefour is transferring an additional 15 hypermarkets and 24 supermarkets in France to independent operators, involving over 4,000 employees, LSA reports. This marks the eighth wave of such transitions since 2018, with nearly 350 stores, including around 100 hypermarkets, now under the “location-gérance” model.
That model is a hybrid between company-operated stores and franchising. Carrefour retains ownership of the property or lease and the business, while the manager is responsible for controlling costs and restoring profitability. Often this approach targets underperforming stores.
Lower costs
This approach has led to increased profitability, with personnel costs decreasing from 12 to 10 % of turnover on average. Since 2018, no French hypermarkets have closed, and stores under “location-gérance” now contribute to about half of Carrefour’s operational results.
However, trade unions are protesting, viewing this as a restructuring in disguise: it diminishes employee wages and benefits such as meal vouchers, health insurance, and voluntary Sunday work. They are also calling for measures against operators who do not respect workers’ rights.
