Monoprix, the French retail chain, is undergoing a strategic restructuring that will see the closure or transfer of ten of its stores. The move, announced on , is part of a broader effort by the company and its parent group, Casino, to adapt to changing market conditions and strengthen its operational efficiency.
According to a company statement, five Monoprix locations will be permanently closed: CNIT-La Défense (92), Vitry-sur-Seine (94), Porte de Chatillon (92), Nantes Decré (44) and Tours les 2 Lions (37). An additional three stores – in Chatou (78), Le Pecq (78), and Argenteuil (95) – are slated for sale. Lidl, the German discount supermarket chain, has already entered into exclusive negotiations to acquire these three Parisian-area stores, with a final agreement expected by the end of the first half of .
The restructuring doesn’t stop there. Monoprix also plans to transfer one store to a new owner and convert eleven others to franchise operations, partnering with an established, unnamed partner. This move echoes a trend already underway within the company, with three stores closed and three transferred to franchise ownership during the third quarter of . Over the first nine months of , Monoprix closed a total of 16 stores and transferred 3 to franchise agreements, while simultaneously opening 19 new locations.
Monoprix emphasizes that these changes are the result of individual store assessments, taking into account foot traffic, the competitive landscape, operational conditions, and specific real estate constraints. The company states that the restructuring is “part of the transformation undertaken by Monoprix and the Casino group, aiming to sustainably adapt the store network, support its modernization and strengthen the operational excellence of the brand.”
Crucially, Monoprix has assured employees that there will be no job losses as a result of these changes. For stores sold to new owners, employment contracts will be transferred in accordance with legal requirements, with existing terms and conditions maintained. For closing stores, the company intends to redeploy all employees to other Monoprix locations.
As of September 30th, , Monoprix operated 622 stores in total, with half of those operating under a franchise or lease-management model. The move towards increased franchising was previewed in November when Casino presented its Renouveau 2030 strategic plan. This plan signaled a greater reliance on franchise agreements for Monoprix stores.
Financially, Monoprix reported a gross revenue of €4 billion in , a decrease of 0.3%. However, revenue for the first nine months of showed a slight increase, rising 0.6% to €2.9 billion.
This restructuring comes amidst broader financial challenges for Casino Groupe, which is owned by Czech billionaire Daniel Kretinsky. Kretinsky’s consortium is preparing for its second debt restructuring in less than two years, signaling ongoing financial pressures for the parent company. The Monoprix changes, can be seen as a component of a larger effort to stabilize Casino’s financial position.
The decision to sell stores to Lidl is particularly noteworthy. Lidl’s expansion into the French market has been aggressive, and acquiring established Monoprix locations provides a quick and efficient way to increase its footprint. The move also reflects a broader trend in the European retail landscape, where discount retailers are gaining market share, putting pressure on traditional supermarket chains like Monoprix to adapt and streamline their operations.
The shift towards franchising also represents a strategic move for Monoprix. By transferring ownership and operational responsibility to franchisees, the company can reduce its capital expenditure and focus on brand management and strategic development. This model allows for faster expansion and greater flexibility in responding to local market conditions.
While the immediate impact of these changes will be felt by employees and customers in the affected locations, Monoprix aims to position itself for long-term success through a more efficient and adaptable business model. The company’s commitment to avoiding job losses is a positive sign, but the broader implications of the restructuring for the French retail sector remain to be seen.
