Go fast. React to the price war in sticking together face bigger. Auchan and Système U, which had been the first to sign an agreement for their purchases in September, is now planning to exchange their hyper and small areas. “Auchan is poised to offer a franchise agreement to associates of the group of traders who hold hypermarkets. It will offer 70 stores under the Hyper U wishing to adopt the Auchan” revealed the magazine LSA 28 January. The tilting of stores would be within three years from 2015.
The speed of this movement can be explained by the coincidence of the difficulties of the two distributors that do not confirm the information. Moult clues, yet combine to give the greatest credit. Auchan is losing market share and profitability, U system must itself face at half figures and its hypermarkets bosses began to rebel. Auchan, which has the most profitable hypermarket of the Hexagon, is appealing the independent owners of U. System For its part, the Norman could offer Simply market, small Auchan formats that are struggling to take off, a more favorable environment. “Both have a real industrial and territorial complementarity” analysis Rodolphe Bonnasse CEO CACOM, distribution specialist. And the two could end up having a communication more and more like …
The end of an era?
At the end of a slogan, end of an era? In March, Auchan will drop the “Let’s live better, live cheaper,” who signs all ads since 2009. A new brand platform is being refined. It should reflect the business strategy to make him lift his head. While Carrefour starts the year bludgeoning his “I optimism” – joyful optimization of consumerism – the fifth French distributor needed. “Profitability has been halved in two years, says one expert of the sign. There is a fundamental reconsideration of the model.” The development duty – including the enhanced alliance with Système U is a strong sign – is one of the paths explored by Auchan. “We will revisit the brand, its attributes, its origins, explained to us in early January, Emmanuel Zeller, director of communication and cooperation Auchan. We must say that we are the first partner of SMEs, innovation comes from it. ” Very similar to the speech of its n ew U system partner.
After a qualifying year 2013 “black” by Vincent Mignot, CEO of Auchan France, 2014 was that of renunciation and deletions. It ends with the departure of Arnaud Mulliez. On November 26, the founder’s son leaves his non-executive after eleven years as President of Auchan France to “devote to personal projects.” The heir does not get along with Vianney Mulliez, his cousin, chair of the group of the Supervisory Board since 2006. Gradually marginalized, the son of Gérard Mulliez, remarried, preferred to devote “personal projects”. “He completed the ten transformation projects he had committed tempers Emmanuel Zeller, director of communication and cooperation of the Auchan group. He named his successor, Henri Mathias, who was his vice president . His departure does not change anything. ” But he shakes teams already shaken in January 2014, with the announcement of the removal of 800 management positions, stopping any investm ent in May and half-yearly sales down by 1.9%.
Caught in the price war, a profound change in the managerial policy and dependence on large format hypermarkets, Auchan is struggling on all fronts. To make matters worse, Russia, where it is the third largest retailer, is, for a time at least, the more the cash machine of the group: “The devaluation of the ruble grows to a faster search results to France powering the business outside, “says one analyst.
Late commercial Reaction
Beginning 2014, Auchan enters the race at low prices led to a breakneck Leclerc. Long after Carrefour. One year after Casino. In 2013, its hypermarkets saw their sales fall by 2.6% and lost 0.2% market share with all of its stores, according to Kantar Worldpanel. “The group reacted late, says Bertrand Gobin, author of The Far Side of the empire Mulliez (LeblogMulliez.com editions), released on 15 February. In 2014, 100 million euros were invested in prices, without much effect. ” While its average selling prices fell by 2.4%, the consumer remains unmoved.
“In late September, the subsidiary of the Yankee Group was behind 430 million euros compared to its objective 500 million cash to meet the fiscal year, “says Gobin. Has it been caught? “In March, for the presentation of the results, we will not give the same reading in 2013, where we all regressions, provides Emmanuel Zeller. The number of receipts is increasing, as the number of items sold. customers coming back more often, even if they buy less. ” But the market share by company in December, published by Kantar Worldpanel January 15, introduce a doubt they do not mention Auchan, suggesting a further fall, when others are in stable minimum. Difficult to find the right balance when the organization is in full upheaval.
shortened decision String
“Before, area managers were margins equalization between the prices of products different radii says Bertrand Gobin. Now price matching is blind. ” Apostle “the company released” theorized by Isaac Getz, Professor of Leadership and Innovation at ESCP Europe, Vincent Mignot shortens up the decision chain. “Where there were 40 heads, we will rely on 97 employees who become bosses of their own market,” he says. Supervision will be reduced by 20%. An operation at no charge: 480 management positions, or 60% of the 800 three years on job cuts announced a year ago, have already been modified. “This is a cultural revolution that is happening at the wrong time, says Guy Laplatine, central CFDT delegate Auchan France. Managers are lost. The new” sales employees “are supposed to give a hand in several” markets “, but they can not be everywhere. ” A necessary change in direction.
After changing in 2013 the shopping center, it was necessary to review the offer in stores. “With closer employees of the customer, they are more industrialists who dictate what is there on the shelf, provides Emmanuel Zeller. We have to change the craft of 5,000 executives in stores, but separating the purchase of supply, we welcomed new constituents as U. System ” First retailers to announce their cooperation to buy the big brands, Auchan and Système U pass by Leclerc. The two distributors will be able to further lower their labels in 2015. “This alliance is a very good sign, ensures Yves Marin, senior manager at Kurt Salmon. It shows a huge capital possible reaction.” But the price is not the only concern of Auchan
formats Problems
Depending on the format of very large hypermarkets. – He has 128 – the group suffers the disaffection of customers in the non-food, the most competitive sector by specialists and internet. If it multiplies the innovations such as click and collect or contactless payment, growth remains elsewhere. Especially in convenience formats, which cartonnent among competitors. Supermarkets Simply Market, created in 2005, are struggling to take off. To give them a boost and make transportation savings, the group inaugurated last June, a first common warehouse between its hyper and supermarkets for fresh products.
Landside, shops A2PAS is just developing. Launched in 2011, they should be a hundred in two years, thanks to the purchase of fifty Casino in Paris. For the first time, Auchan even tries to the franchise, which will represent 40% of new signs. For now, small areas relate only 1% of its turnover. “There was an intense reflection on the articulation of concepts, says Rudolph Bonnasse, CA CEO Com, distribution specialist. Auchan launches into the franchise, in less orthodox modes of development. The group is known to function as a laboratory and family, it has the capital structure to be able to take time. ” The transformation is just beginning.
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