Ends of the organics

Before to show you a podcast from a radio broadcast describing our problem, I would like to trace the content of an article published in Nature in France in 2006:

"The European Commission has recently proposed to amend regulations concerning the method of production and bio preparation, in order to make it clearer for consumers and the industry, but also to facilitate free trade in Europe . Intended to be implemented in 2009, this bill very discussed should be adopted by June this year, leaving little time for professional organizations and consumers to respond.

Indeed, if the project offers some advanced rules for organic wine, or the possibility of exempting smaller distributors bio cost control, in general it calls into question the foundations of organic farming . Thus, if adopted, would chemistry its entrance with the possibility of using pesticides for crops, and use of allopathic medicines for animals. In addition, with this text, the European Commission would bring GMOs in the Bio, tolerating a level of pollution by 0.9%. "

Here is a podcast of a radio extract on 26 December 2008.




This excerpt relaunch the debate launched in 2006 but this time the threat of the reform of biologic specifications is imminent. What is at stake is the entry of GMOs in Europe (genetically modified organism) and the withdrawal of the subsidiary Bio.

This post is intended to warn you about this danger, which requires short-term support of engaged consumers.

Abrogation of the Royer Law

This law dates back from December, 27th 1973, and was created in order to protect little shops from big retailing firms, that had to meet different criteria to get the right to expand or create new buildings. They had to ask for an authorization if the retailing surface was over 1000 square meters in a city of less than 40 000 inhabitants (1 500 sqm for more than 40 000 people). Since 1996, retailing companies had to ask for this authorization at the “Commission départementale d’équipement commercial”.

The 205th proposal of the Attali Report proposes to abrogate this law. Brussels considers that it hinters free installation. The government first thought about it last summer as part of the law for the modernization of economy, but it lat retailing companies do all they wanted. So the parliament stopped it, and thought about it again in October.

UMP (right wing French Party) MP Jean-Paul Charié was charged by French president Nicolas Sarkozy to write a report that could end up into a law. This law should be abrogated little by little, according to the publication by each department of a document of commercial activities orientation. The opening of new shops would only depend on urbanism, with building permits.

Carrefour goes into corner stores

The first Carrefour City opened its doors in the 16th district of Paris. This store will have as characteristics to be relatively small (approximately 410 m²), to be located in town centre and to have opening hours adapted to the urban life (6/7 days of 7:00AM to 11:00PM). This "mini-market" will be composed of 3 distinct areas:
o snacking and ready-made meals
o traditional products
o relaxation area at the store entrance (microwaves, coffee machines, bar and chairs)

That shows that Carrefour tries to widen its horizons by deciding to target the urban population who does not want to move out to the downtown areas to make its purchases.
It is a premiere in France but Carrefour had already tried out this system in Brussels since a similar store had opened in September 2008 on the Chaussée de Charleroi.
Carrefour thinks about opening two other Carrefour City away from Paris:
o in Nimes on January 23rd
o in Avignon on February 4th

I have personally tested out it in Belgium and I can say that it is a very good system for the people who do not wish to make haute cuisine. But the store sells interesting number of products.

Carrefour to open 28 new retail location in 2009

Despite very bad results for year 2008, the french ‘s giant retail company carrefour announce the creation of 28 new market in China for 2009.

Carrefour has already launch a profit warning for year 2009, explaining that this exercice won’t be better than the 2008 because of the global economy slowdown. Carrefour is also afraid that Tesco, the third global retailer which is better implant in BRIC area take the lead on Carrefour.
During 2008, carrefour opened 22 hypermarket in China, we can assist to an increase of power of the french implantation on chinese soil.

Despite a strong economy slowdonw, carrefour which is badly affected by the crisis continue to invest on the most profitable market and in the same time restructur his activities in Europe where hypermarket attract less and less customers in profit of small local retail center.

Are chinese investment going to save carrefour’s world second place ? Carrefour is facing a lack of influence in India, country whithout which it can’t pretend to be such a world leader.

Tesco has strong chances to win this battle.

La grande distribution au Vietnam

Le Vietnam est arrivé premier des marchés émergents en termes d’attractivité pour les distributeurs mondiaux du Global Retail Development Index 2008 (GRDI), réalisé par la société de conseil AT Kearney. Ce classement consacre l’ouverture récente du Vietnam où plusieurs enseignes de grande distribution alimentaire sont présentes. Parmi ces enseignes certaines sont vietnamiennes, comme Fivimart et ses 16 magasins. Saigon Co.op, aussi, créé en 1998 qui compte aujourd'hui 34 supermarchés et qui prévoit d'en porter le nombre à 100 en 2015. Pour les groupes étrangers, le français Casino implanté en 1998 y possède sept magasins de l’enseigne Big C. Implanté en 2002, on compte 8 Metro au Vietnam.
Pour la mission économique de l’ambassade de France au Vietnam, la distribution au Vietnam devrait évoluer principalement dans deux directions : "la montée en gamme des centres ville, ouvrant l'accès à des biens jusqu'à présent peu ou pas distribués au Vietnam et l'expansion des chaînes de grandes surfaces généralistes ou spécialisées".
À l'approche du Têt, qui consacre traditionnellement une forte hausse des prix, l’engouement des Vietnamiens pour ces lieux de distribution se fait sentir. Comme l’explique M.Hang client du Fivimart d'Hanoi "même si les prix sont un peu supérieurs à ceux des boutiques de la rue, la qualité est toujours assurée". Dans la mégapole du Sud, Ho Chi Minh, les supermarchés sont aussi bondés. Il faut dire que les grandes surfaces font preuve d'imagination pour attirer les clients en proposant des spectacles gratuits, des promotions sur certains produits. "Nous baissons nos prix sur plus de 500 articles d'ici à dimanche prochain. Nous sommes aussi engagés à ne pas augmenter les prix de certains produits. Toutes les marchandises de première nécessité sont prêtes depuis 2 mois, les stocks étant pleins", fait savoir Duong Thi Quynh Trang, directrice chargée des relations extérieures de Big C. Même son de cloche du côté des supermarchés Saigon Co.op qui prévoit suffisamment de stocks pour pouvoir baisser les prix des produits de première nécessité de 5 à 10%.

Sources:

http://www.missioneco.org/vietnam/index.asp

http://lecourrier.vnagency.com.vn/default.aspxt=XT33&ct=CT49&page=newsdetail&newsid=49120

Retailers are recruiting ...

To address the current crisis, many general companies are tempted to dismiss. In contrast, those of retailers still have a large dynamic hiring. Carrefour, for example, in 2009 will hire 45,000 people, including 600 managers and 15,000 fixed-term contracts. All figures on the other distributors are available on the web site of challenge to the address below:

http://www.challenges.fr/classements/entreprises_recrutent.php

Crisis and balances, a risky rescue.

Started in France on January 7, the balances are, for a large number of shop, the last chance to save a 2008 year-end catastrophe and to guard against an early 2009 rather badly engaged.

Whether England with sales up 70% at Harrod's or France with discount - 90% in Brandvalley, dealers expect a lot from these sales.

It seems that this year it will be the most affected areas of fashion and Hi-Tech that will offer more opportunities. With a decline of -5% for the month of December on the textile sector in France, signs will definitely need to get rid of their stocks.

Finally, consumer's reaction remains unknown. They continue to tighten their belts and they eagerly awaited the start of the sale to make their purchases. The response in 5 weeks ...