Intermarché, France’s third-largest grocery retailer, plans to potentially close 30 stores acquired from Casino by the end of 2023 or in 2024, impacting around 680 employees. Some locations have already shut, raising concerns over financial viability. Intermarché is offering individual support to affected staff while exploring job placements within the company. The closures stem from high operational costs and declining customer loyalty, as Casino undergoes a significant restructuring process amid its financial struggles.
Potential Store Closures by Intermarché
In a significant announcement, the Mousquetaires group/Intermarché, the third largest grocery retailer in France, revealed plans to potentially close 30 stores acquired from Casino by the end of 2023 or in 2024. This move affects locations ranging from Finistère to Vosges and Aude to Val-d’Oise, and involves nearly 680 employees.
Some stores, including two in Lyon and Boissy-Saint-Léger, have already shut their doors, raising concerns among staff and stakeholders about the financial viability of these points of sale. Despite efforts to maintain operational stability since the acquisition, the distributor cited an ‘unattainable financial balance’ as the reason for considering these closures.
Support for Affected Employees
In a meeting held today with employee representatives and staff from the affected stores, the economic situation was discussed extensively. The Mousquetaires group assured that ‘individual support will be offered to each employee,’ along with various options for job placements within the organization.
While there may be opportunities for other retailers to take over these stores, the financial feasibility remains a challenging issue. Since acquiring 294 stores from Casino, which has been grappling with significant financial issues, Intermarché’s strategy has come under scrutiny. The high operational costs and past mismanagement have led to declining customer loyalty, prompting the need for this re-evaluation.
Thierry Cotillard, the leader of Intermarché, previously indicated that there could be cities where takeovers are not viable, although he emphasized the group’s commitment to preserving as many jobs as possible from the former Casino employees.
In a broader context, Casino is undergoing a painful restructuring process, having employed around 200,000 individuals globally at the end of 2022. The chain has faced substantial changes, including the sale of numerous stores to competitors, which has generated significant capital for its ongoing operations.