Retailers are increasingly turning to the franchise model in their store operations. Take Carrefour, from origin operating with own stores, started franchising convenience stores in Brazil last year. In Belgium, the majority of its stores are operated by franchisees and expansion here will equally be done through franchising. In France, it is mainly hypermarkets that are seeing a transfer to franchise.
Alexandre Bompard, CEO of Carrefour, has put the franchise model at the centre of its strategic operations and says that more than 90% of future store openings in Europe will be franchises. The Group will continue to transfer integrated stores to franchise and lease-management in Europe.
Delhaize stirred up the Belgian retail sector last year by announcing that all the stores it owned and operated in Belgium would be franchised. In the meantime, the retailer found buyers for all of the stores and the transfer operation started a few months ago. The goal is that the transformation will be finished by this autumn. Reportedly, the first new openings show encouraging results.
Auchan, historically owner and operator of all of its stores, embarked on a large development project towards franchising supermarkets. The retailer set itself the goal of achieving one thousand franchised stores in France in the long term.
Experts see the move towards franchising as a way to keep prices low and preserve margins. Franchisers can respond more quickly to the needs of their customers, with adjustments to the offer and the addition of local products. Work organisation in the store can be managed more flexibly, improving productivity and service.