Carrefour’s problems are several. First came the announcement last February that it would close 14 hypermarkets and seven supermarkets of the 117 stores across Belgium. That led to widespread analysis that the company had not tailored its policies to the Belgian market – not the best publicity for a retail chain struggling to maintain market share against two extremely strong competitors, Delhaize and Colruyt. Since then, agreements have been reached for some stores to be sold, leaving eight hypermarkets and four supermarkets still facing closure.
Then came the reaction – strike actions, which strengthen the public’s sympathy for workers threatened with redundancy. Consumers do not like their local shops to be taken away – even if they had not been patronising the stores, which is what gave rise to the problem in the first place.
Not only has the fallout from the closures plan led to a drop in earnings (April’s figures follow a first quarter that saw turnover down by 6.2%), the strike last week also levied a heavy cost, estimated by Lavinay at €20 million for Friday alone, with the effect exacerbated by the 1 May holiday on Saturday, when stores were closed.
“If only a minority take part in the strike, I can imagine the possibility of proceeding with negotiations,” Lavinay said, referring to talks with unions that have been going on since February. “But if the strike is widespread, I see no other possibility than to bring in the help of an arbitrator from the government employment service. I have every respect for the right to strike, but I find it completely irresponsible to strike between two negotiating days.”