more franchising, less direct management

more franchising, less direct management
more franchising, less direct management
Carrefour Italia announced on 1 October a transformation plan aimed at “strengthening the brand on the national territory”, to return to profitability after years with loss-making financial statements. The plan is based primarily on the consolidation of leadership in franchising, with the passage of several points of sale from direct management to franchising. Secondly, the plan focuses on improving the competitiveness of the direct network of hypermarkets and supermarkets and on the evolution of the organizational model of the headquarters. Thirdly, the plan focuses on greater attention to the customer, also through greater digitization

From the editorial staff

Carrefour Italy today announced a transformation plan aimed at strengthening its growth, consolidating the franchising model on the sales network, improving the competitiveness of hypermarkets and direct supermarkets and streamlining its internal organization, with the aim of concentrating on activities serving the points of sale.

With this plan, Carrefour confirms the company’s willingness to invest in the country with the aim of returning to profitability and lasting growth. This plan is necessary in response to the structural changes taking place in the retail context, including the evolution of the market towards digital and the automation of processes and as a consequence of the impact of the Covid-19 pandemic on the consumption scenario in the country.

Carrefour Italia’s new transformation plan is based on three main guidelines. First, the consolidation of leadership in Italy in franchising, as a tool to promote the growth of the network and the strengthening of the Carrefour brand throughout Italy. The plan calls for a rapid expansion and transformation of outlets located in different regions from direct to franchise.

The expansion of the franchise network will create new employment opportunities and the transition from direct stores to franchises it will have no employment impact for the transferred employees. The franchising model developed by Carrefour in Italy already has a proven success story: in 2021 alone, over 34 workers switched from employees to entrepreneurs. This number will rise to over 50 by the end of 2021. By the first quarter of 2022, another 25 workers will take over as franchisees. As part of this strategy, Carrefour Italia will invest heavily in new services, including consultancy and training, for Carrefour entrepreneurs.

Secondly, the improvement of the competitiveness of hypermarkets and supermarkets, thanks to the adaptation of store concepts and assortments, the simplification of internal processes and the optimization of productivity. Third, the refocusing of the corporate organizational model on the points of sale and on the customer, thanks to a greater simplification of processes, digitization and a leaner organization of the headquarters.

To make the transformation project for the relaunch of Carrefour in Italy sustainable, the company provides, in the context of discussions with trade unions, the activation of a social plan exclusively on a voluntary basis, which may include training and retraining interventions for personnel to facilitate internal and external relocation, support programs for entrepreneurship and redundancy incentives. Lhe impact on employment is estimated at around 600 employees in direct sales points, distributed throughout the national territory, and about 170 people employed at the headquarters.

The company makes it known that it is committed immediately, in the context of confrontation with trade unions and the relevant institutions, to ensure the best possible solution for each collaborator involved. The plan announced by Carrefour on 1 October aims to support the effort to relaunch Carrefour’s activities underway in Italy, a key global market in which the company intends to continue to invest in a sustainable way, making use of full support and solidity. financial company of the Group.

Copyright: Fruitbook Magazine

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