Since the end of 2019, the large food distribution sector is in full restructuring in Reunionnotes the IEDOM: “ The E. Leclerc Réunion group opened three hypermarkets: the first (Les Terrasses) in Saint-Joseph in 2019, the second (La Réserve) in Sainte-Marie in 2020 and the third (La Caserne, ex-Géant) in Saint- Pierre in 2021. The Système U group also opened three supermarkets: the first in Éperon in 2019, the other two in La Plaine-des-Palmistes and Saint-Joseph in 2020 “. This increases the overall capabilities of the sector and increases competition in the best-resourced geographies. Furthermore, mass distribution experienced significant shareholder changes over the period.
Between 2019 and 2022, the sector’s turnover increased by 2.3% per year (see graph below), less sustained activity than the economy as a whole (+3.8%). “ In detail, the GSA (large food stores, editor’s note) go against the grain of other sectors. In 2020, their turnover increased by 4.4% on average compared to the previous year, while that of other sectors contracted by 3.7%. Large-scale food distribution is considered an essential business and remains less impacted by opening restrictions », underlines the IEDOM.
The combination of the reorganization of points of sale and the return of inflation means declining results for the sector. The decrease in added value (-3.8%) is explained in particular by the costs of takeover operations and brand changes. “ In fact, these transformations have led to additional costs in terms of brand change, shelf restocking, logistics, warehousing, security, studies, etc. These contribute to the increase in external charges: +6.1% per year between 2019 and 2022 », Specifies the IEDOM.
The organization confirms the decline in the sector’s operating results based on the examination of the individual financial ratios of GSA companies. “ The commercial performance of large-scale food distribution in Reunion is gradually eroding from 2019 to 2022. In fact, half of the department’s GSAs display a commercial margin rate (i.e. the ratio between the commercial margin and the price sales) higher than 20.5% in 2022 while this median rate was 22.0% in 2019 “. The deterioration is also due to the costs of development work accompanying the reorganization of the brands as well as the increase in personnel costs.
Paradoxically, despite the decline in the performance of Reunion GSAs, they are more profitable than in mainland France. In 2022, half of the French GSAs will record a commercial margin rate higher than 19.4%, or 1.1 points less than in Reunion. On the island, operating profitability is higher, due to lower staff costs. The share of staff remuneration in the wealth created is thus 62% in Reunion (median) in 2022 compared to 74.2% in France, due to the outsourcing of certain tasks and tax exemption schemes. loads. Ultimately, half of the GSAs in Reunion have a gross operating surplus rate (weight of this surplus in their turnover) greater than 4% compared to 2.4% in mainland France.
“ Despite declining operating profitability, Reunion GSAs still have a solid financial base: half of them hold equity representing 40% of their balance sheet, compared to 35% in mainland France. This level strengthened between 2020 and 2022 thanks to the reduction of the balance sheet with a lower debt ratio (-4.4 points) », concludes the IEDOM.
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