THE’Competition Authority it afterward authorized the purchase of 25 shops wiht the Casino brand by its competitor Carrefour, the second largest distributor in France, behind Leclerc. Without prejudice, however, to the sale by Carrefour of two stores located in Argenteuil (Val-d’Oise) and in the second arrondissement of Paris.
the body, which is primarily responsible for ensuring that competition between distributors is not too weak at local level, approved at the end of November the acquisition of 200 Casino stores by another distributor, Les Mousquetaires/Intermarché, on the condition that they turn out to be eleven.Casino had to sell almost all of its department stores at the beginning of the year due to a financial situation that became unsustainable.
Another of its competitors, Auchan, has purchased a hundred shops and the competition Authority’s opinion on the operation has not yet been made known. Additionally, Carrefour bought the Cora and Match brands this year, which will also require Competition Authority authorization, expected in early 2025.
Most of the shops have already changed brands
All these operations could be carried out without waiting for the final decisions of the Competition authority, thanks to an “exemption with suspensive effect” granted by the latter “to take into account the difficult economic situation of the shops”. The shops affected have therefore generally already changed brands.
Without this,the merger control authority feared an “impoverishment of the diversity of supply,the quality of service or an increase in prices to the detriment of consumers” in these catchment areas.
According to the unions, 3,000 jobs are at risk
At the end of 2022 Casino still had 200,000 employees worldwide, including 50,000 in France. But he had grown into debt and, after multiplying his sales, he had to restructure his debt in notable proportions.
The retailer, reoriented around the smaller brands, Franprix, Vival, Monoprix or Spar, today employs fewer then 30,000 people, even before a social plan under discussion which, according to the unions, puts around 3,000 jobs at risk.
what are the expected changes in consumer prices following the restructuring of Casino and its competitors in France?
Interview: The Future of Retail in France Post-Casino Restructuring
Editor (Time.news): Thank you for joining us today, [Expert’s Name], to discuss the recent developments in the French retail market, particularly regarding the Casino brandS restructuring. Can you start by summarizing the key recent activities involving Casino and its competitors like Carrefour and Intermarché?
expert: Absolutely, and thank you for having me. Recently, the French Competition Authority approved Carrefour’s purchase of 25 Casino stores. This decision comes after Casino has been navigating a tough financial landscape, resulting in the need to sell off many of its locations. In total, Carrefour acquired 200 Casino stores, while Intermarché also secured a considerable number under certain conditions. Additionally, Auchan is in the process of acquiring around a hundred stores, even though we are still awaiting the Competition Authority’s decision on that deal.
Editor: That sounds like a massive shift in the market. What implications does this restructuring have for competition and consumers in France?
Expert: The Competition Authority’s actions are crucial hear. They aim to ensure that competition remains robust at local levels.By allowing these mergers,they are trying to avoid a scenario that could lead to reduced diversity in supply,declining service quality,or increased prices—all potential consequences of diminished competition. The “exemption with suspensive effect” granted allows these stores to change brands quickly to stabilize in light of the difficult economic surroundings,which is vital for maintaining consumer choice and accessibility.
Editor: It seems like the changes are happening rapidly. For consumers, what should they keep an eye on as these transitions unfold?
Expert: Consumers should be vigilant regarding potential price changes and service quality. As brands switch, there might be shifts in inventory and pricing strategies. Moreover,with the impending risk of job losses—estimated to be around 3,000 according to unions—there could be implications for local economies and employment rates. It’s imperative for shoppers to stay informed about which stores they frequent and how these changes might affect them both in terms of pricing and service levels.
Editor: Speaking of employment, how meaningful is the impact on jobs due to these transactions?
Expert: The impact is indeed significant. Casino had to drastically downsize by reducing its workforce from around 200,000 employees globally to below 30,000 in France. The unions are rightly concerned about the potential loss of 3,000 jobs as these operational changes take effect. This situation is alarming not only for the employees directly affected but also for communities reliant on these jobs. It’s a critical juncture for the retail sector in France, and we need to see how it evolves.
Editor: Looking ahead, what practical advice would you give to stakeholders in the industry—be it retailers, employees, or consumers?
Expert: For retailers, the key is adaptability. Embracing the shifts in consumer behavior and brand loyalty can definitely help them thrive amidst these changes. For employees, staying informed about potential job developments and exploring transferable skills can mitigate risks. Consumers should be proactive in exploring new store offerings and advocating for their rights as customers to ensure they are receiving fair prices and quality service. dialog among all stakeholders—retailers, employees, and consumers—will be crucial as we navigate these significant changes in the French retail landscape.
Editor: Thank you, [Expert’s Name], for this insightful discussion. It’s clear the French retail landscape is undergoing significant transformations, and your expertise shines a light on the implications for all involved. We appreciate your time!
Expert: Thank you for having me. It’s a pleasure to share insights on such an vital topic!