REPORT OF THE ECONOMIC COMMISSION
PROJECT "New business model Hypermarkets"
The Central Works Council was informed on 29/01/2010 first time on a project called "Initiative VI reinvent the hypermarket"
The Central Works Council has commissioned on 29/01/2010 Economic Commission to conduct a study and produce a report analyzing organizational, economic, legal and social consequences of this project and when will deployed, being able to be assisted by the Chartered Accountant of the Central Works Council.
The central works council has again been informed to a consultation on 14/10 / 2010 on the initiative VI project to reinvent the supermarket which meanwhile has been renamed "New business model "
This report deals successively with:
- the problems and challenges of the project,
- the working methodology of the Economic Commission,
- findings and implications of a possible deployment,
- conclusions and the opinion of the Economic Commission.
1 - PROBLEMS AND ISSUES OF PROJECT
- REMINDER
The Central Works Council has been informed on 29/01/2010 at first and 14/10/2010 on the proposed introduction of "new model commercial ".
This project is the declination of the hypermarket initiative VI "reinvention of the hypermarket" whose purpose is to consider a new business concept that revolves around the following principles:
- The best value
- best choice on poles specialists
- space of the most spectacular discovery
The project aims to review the business model of hypermarkets in France:
- Innovative services along with a streamlined assortments
- Breaking the monolith of the hypermarket to give new dimension to see his multi "specialist"
The business model proposed aims to:
- Provide customer the best value for money
- the best choice on the poles specialists
- space of the most spectacular discovery
Two basic models for deployment tailored to the needs of each store.
Two tests were conducted in stores and Venissieux Ecully representing a store "People" magazine and a "bourgeois"
According to Management, the project would result in the spokes or delete the following families: Major DIY, automotive accessories, bicycles adult permanent, permanent furniture, garden out phyto
Employees and families of rays that have been reclassified deleted in their respective institutions.
impact on employment in Venissieux :
Management states that the new business model has generated the creation of posts of which 30 injecting drug users. The job cuts follow the elimination of product families are 7.
impact on employment in Ecully :
Management states that the new business model has generated the creation of 39 permanent positions The job cuts follow the elimination of product families are 8.
Impact on customers:
The study customer satisfaction survey of stores in test always conclude in the direction to "general satisfaction expressed"
The new business model hypermarkets improve the customer felt about the following aspects:
- Access store
- Shopping
- Clean store
- Parking
- Food Choices
- Friendliness checkout
- General atmosphere
- Fresh products
- Prices of MDD Carrefour
- Quality fresh produce
- Choosing non food
- Traffic in the store
- Friendliness of staff
- Friendliness hostess
- Value for money
- Caddies
- Interest promos
- Error ray price / case
- Charging station prices
- Prices of fresh produce
- Availability usual products
- Prices generally
- Featured price
- Localization of products
- Availability of staff
- Availability of vouchers
- Waiting on hand
- Waiting host stand
1-2 Project Information-Consultation
Given the results obtained by the Directorate, the new business model will be deployed within 18 months in France hypermarkets
New model Trade provides a first wave of deployment of the model on 70 Carrefour hypermarkets Planet,
expected average investment per establishment is approximately four million €.
As for Carrefour business model (concept reduced) we have no information on possible deployment
expected average investment per establishment is approximately one million eight of €.
The Economic Commission will therefore pay particular attention to the following problems:
- What are the economic and organizational challenges of this project?
- What are the social consequences of this project, if it is deployed?
- What are ways to mitigate its social consequences?
2 - METHODOLOGY OF WORK OF THE ECONOMIC COMMISSION
Economic Commission worked on two axes:
1) visit the stores and Venissieux Ecully on 10/26/2010
2) Two information meetings with the DRS
Economic Commission visited October 26, 2010 the shop and Ecully Venissieux to test for the establishment of new business model and posed questions to the
3 - FINDINGS AND CONSEQUENCES OF THE DEPLOYMENT
Summary visit the shops and Venissieux Ecully test stores to Carrefour Planet
- In store Ecully
The Economic Committee found that in the new business model New trades are emerged:
- BSBE Space: Space Beauty Health and Well Being.
- The culture concept bar with ticketing, gamers can download games and software, to place orders on cultural products.
- Universe Baby comprising a full assortment, food, hygiene, childcare.
- The universe very attractive market with the introduction of new concepts (sushi booth, booth preparation Smoked salmon on site, buttons, concept cheese cellar and delicatessen).
- radius Bio developed with a very extensive range.
- frozen space with a dedicated collection point.
- Exclusive Apple on sector EPCS
- the store Venissieux
The configuration of the store is different from Ecully, as adapted to the environment
local customers, the concept is identical, but differences in some rays
to note:
In the presence bazaar area of the stand "VIRGIN" being tested in space crop replaces
bookstore shelves, music and video.
space beauty, health and wellness with a stand identical to Ecully "Beauty Bubble"
frozen space, Nursery, EPCS, and the market are similar to those of Ecully
The organic section smaller.
The economic committee found two stores in the reduction of certain sets, such as: crafts, gardening, see the complete removal of certain product families such as: bicycles, mattresses , furniture, shoes.
The visit concluded by a question and answer session with management.
4 - CONCLUSIONS AND OPINIONS OF THE ECONOMIC COMMISSION
- On the commercial :
The new business model that had only 2 months of real life seems to significantly improve the quality of customer service.
However, this model leads to a disengagement of the sign as a seller of certain product families knowing that such cycles the radius of the establishment of Venissieux, removed as part of this business model was 1 st ranked France.
- Economically:
All investment efforts for the development of hypermarkets are concentrated on the new business model and its deployment.
The lack of hindsight on the economic effects of the new business model does not demonstrate that this model has a positive impact, certain and sustainable revenue. To date, preliminary results are not up to the expected objectives, however, the turnover showed a significant increase and an increase in gain. market share
The willingness of the company is to ignore deliberate on certain product families, however sources of CA and market share. The turnover generated by these product families is expected to be offset by the development other families. These choices are strategic. These
of strategic choices are not necessarily sufficient to offset the loss of turnover of families removed.
For example : The world of the home that includes the art of the table and the white ray does not demonstrate its effectiveness in maintaining, developing show turnover. The increase of reference of this universe is supposed to compensate for the removal of furniture and bedding families ... ..
- On the social and human
The new business model has the following consequences:
In remove shelves or family of products: Major DIY, automotive accessories, cycling adult permanent standing furniture, garden pest out.
Employees working families in the spokes or deleted have been reclassified in the store.
The new business model has the following consequences:
To organize the world in specialized units, called the universe functions including sales specialist: gamers, vendors bio. The direction in his presentation of the organization defined the level of its employees' sales assistant level II. However, it appears that the level of sophistication and professionalization of these occupations require a new skill and a permanent updating of knowledge (as sellers EPCS), which is why our appreciation to the level These tasks correspond more to Level III "sales consultant".
As such, these new businesses are in their tasks and Profile at Level III and should be incorporated in the collective agreement Carrefour.
Economic Commission Opinion:
The new business model being tested in hyper (Venissieux, Ecully) since August 25, 2010, he would need a point to date on development economic and social consequences of this model on these two institutions is presented to the EAC in January 2, 2011 (before the deployment phase in other hypermarkets).
Similarly it would also need an update on the situation of the first half is presented to the CEC 2011 and 2 nd half of 2011. These points of situation to deal with the progress of deployments, the details of investments by institutions, the economic (development / maintenance of CA, making / retaining market share) back on the life of the universe, and the consequences social medium term deployment of the new business model (creation / deletion of posts, new business / new classification, impact on employment)
The Economic Committee invites the CEC to ensure that jobs and new jobs created under the new business model will be offered first to employees whose jobs are declared sensitive or that they will disappear product family because of the new business model
The Economic reminded members of the Central Committee that the business partnership Virgin is currently subject to a test that should be completed by end 2011.
In this respect the consultation so far can not relate to the validation or non-validation of the concept Virgin. This point of the new business model will necessarily be an information / consultation specific CEC Hyper SAS, if management were to consider the deployment of the concept Virgin.
Economic Commission therefore invites the Central Works Council to abstain in the vote on this project due to lack of hindsight on the effects and consequences of this project.
0 comments:
Post a Comment