Major change in scale for a mass retailer: ensure the economical and people performance in a high-stake takeover
Background
A leader in French mass retail is taking over 294 stores from a competitor, representing a 15% point of sales increase in its network and approximately 2000 employees.
This growth represents 14 years of commercial development for the brand, marking a pivotal moment in the company’s history. The stakes are high, with the goal of remaining in the top 3 in the French market.
The two companies have very different business models. Unlike the taken-over stores, which are fully integrated, our client is a group of independent entrepreneurs (“adherents”, often couples), who own and operate their stores, with freedom in their social and commercial policies, while respecting fundamental Group principles.
To ensure a satisfactory takeover of the stores in its model, our client approaches us to support the store owners in successfully scaling up: buying and managing their 2nd or 3rd point of sales.
Indeed, expanding from a single store to multiple points of sale requires a significant shift in entrepreneurs’ contributions and roles. It is a new way of positioning and operating. Successfully scaling up means working on the economic health of the entities, team engagement, and the personal well-being of the “adhérents”.
Approach
To help them prepare for this change in scale, we proposed a dual approach, both operational and reflective (monitoring and coaching), which aims to:
- Mark out, through a solid work structure and a roadmap, the steps, decisions, questions to be addressed, and risks incurred. Plus governance issues, risk analysis.
- Prevent and respond to imbalances caused to members on the human and family level.
Phase 1: a diagnosis based on interviews with entrepreneurs who experienced scaling up with different approaches and outcomes, to identify organisational, decision-making and operational issues as much as human issues.
Phase 2: an individual/couples support over 8 months to build a customised roadmap and activate all the levers of scaling up.
Outcome
We supported the entrepreneurs in their change of scale on several business and human dimensions. We allowed them to clarify the motivations in the buying of the additional points of sales. They each developed a roadmap to prepare their new contribution and the operational conduct of more than one entity.
As an individual, we helped them remain focused on the specific needs they identified, remain engaged, leaning on their forces and resources and optimise their scarce time for a maximum impact on their business.
Financial results of the network were major; this takeover operation led to 20% to 30% of average growth in turnover for 90% of the outlets rebranded within 18 months. At the same time, more than 10,000 jobs across France have been preserved and more than 1,500 additional new employees have been hired in stores and in logistics bases. The gain in market share was +1.3% points.
Conclusions
Hommes & Performance, at its core, enhances both the economic and human performance of companies.
Helping this retailer change of scale embodies the expertise and mindset of Hommes & Performance: developing business performance, developing skills and competencies and developing individual capabilities of key leaders.
At a strategic and pivotal moment for the client, Hommes & Performance consultants and coaches guided the company to success through its operating modes and people, ensuring the right effort was made at the right time and place to ensure the company's change of scale.
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Hommes & Performance17, rue de Châteaudun
75 009 Paris
France
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Contact +33 1 42 85 49 49
Email: valerie.zorzi@hpsas.com
www.hpsas.com
