In great financial difficulties, the fifth French distributor is preparing to carry out a major social plan.
Storm warning at Auchan France. After the setbacks of the Casino group, it is the turn of the fifth French distributor to be shaken from all sides. The management of the flagship brand of the Mulliez galaxy (Leroy-Merlin, Decathlon, Boulanger and Kiabi) convened employee representatives this Tuesday and should present them with a major social plan. Around 2,300 positions could be threatened out of nearly 54,000 employees, according to a source confirming information from La Lettre. The measures would particularly target support functions and stores. For its part, management refuses any comment.
This plan is in addition to the project to reduce the sales areas of its hypermarkets to reduce the size. These very large stores, which made Auchan successful in the 1960s and 10970s, are no longer on the rise. Today they constitute the Achilles heel of the brand.
It is a test of fire for the new general director of Auchan Retail Guillaume Darrasse who knew that his mission would be difficult when he arrived last April. The group can no longer turn a blind eye to its financial difficulties. In the first half, Elo, the group's parent company, posted a net loss of almost a billion euros mainly due to Auchan France, whose turnover fell sharply by 4.7% and Ebitda decreased by 115 million euros. The situation is no longer tenable in a sector where competition is raging, with independents (Leclerc at the top of the list) who are doing well since the inflationary crisis.
France
