Impacted by the Coronavirus/Covid-19 epidemic, 5 major trade federations are sounding the alarm. They are calling for increased government aid, and for solidarity on the part of lessors, bankers and insurers to cope with the consequences of this new crisis.
Currently, all retailers are being impacted, for the third time in 14 months, by a new crisis, that of the Coronavirus/Covid-19 epidemic spreading across France, following the strikes against pension reform and the "yellow vests" protests. Already, since reaching stage 2 on February 29, we've seen a rapid acceleration in the decline in footfall and sales across the country, both in stores located in major cities and in more rural areas. In tourist areas and those directly affected by the virus, this decline is already leading to partial or total store closures.
All players in the retail sector - chain stores, franchises, independents, cooperatives and associates - are suffering from this exceptional health crisis, with some already in a state of absolute emergency. The 3.6 million jobs in the retail sector are at stake, particularly among small and medium-sized businesses whose financial foundations are more fragile.
Feedback from companies in China and Italy suggests that the economic and social consequences of the epidemic will worsen rapidly. We therefore need to start preparing for this as soon as possible, by putting the best possible measures in place.
At this stage, the urgent need is to respond to the cash-flow difficulties encountered by companies.
The 5 federations are therefore asking the Government to strengthen the support measures already in place with :
- automatic tax and social security rebates for the duration of the crisis. The deferrals and deferrals of charges announced by the government are now
insufficient, even as difficulties mount. - the possibility of immediate recourse to partial activity as soon as the company submits its application, in order to maintain employee employment.
The Federations are also calling on the commercial real estate industry to show solidarity by :
- grant retailers the rent reductions they need to adapt operating costs to the reality of store activity,
- make it easier to pay rent and service charges, and
- not to apply penalties for partial or total store closures.
They call on the government to firmly support this appeal, as it has legitimately done for suppliers and their subcontractors.
The Federations are also calling onall those involved in the banking sector to act swiftly to maintain payment and cash flow facilities, and on the insurance industry to cover any operating losses resulting from this force majeure event.
In addition to the drop in traffic, the Federations point out that some companies are also facing major supply difficulties due to the shutdown and partial resumption of factories in China, as well as the continuing blockade of certain ports in France. They therefore call on the government to take all necessary measures to ensure the smooth flow of goods.
"The survival of certain companies is now at stake, and we must all mobilize to overcome this exceptional crisis. Faced with a case of economic force majeure, it is absolutely essential to be able
to count on the support of the Government and all trade partners to avoid the consequences of this crisis being even more serious in a few months' time", declares Yohann Petiot, Managing Director of Alliance du Commerce.
"More than 60% of France's retail trade is carried out by individual entrepreneurs in SMEs or VSEs, who by definition have limited financial resources. The health situation and the uncertainty it creates for business over the coming months call for national solidarity on the part of the public authorities and all players in the sector. The survival of thousands of companies and their employees is at stake. We remain confident in the measures that the Government will take, and in the solidarity shown by all our partners", declares Alexandra Bouthelier, General Delegate of the Fédération du commerce Coopératif et Associé.
"Faced with this exceptional situation, it is imperative that the Government further strengthen the aid offered to businesses to cope with the direct economic impact on all retailers. As for
franchisees, who have also borne the brunt of successive waves of protests over the past 2 years, some will not have the financial capacity to recover if they are not supported by easing measures
tax and social. Indeed, the vast majority of franchisees are very small businesses with an average of 9 employees. That's why we're counting on increased government support to lessen the impact on our businesses",
declares Véronique Discours-Buhot, General Delegate of the French Franchise Federation.
"Independent clothing and textile retailers have been fighting for over a year to preserve their businesses and their employees, in a local environment that has deteriorated significantly. Today, I reiterate my requests for support, made just over a year ago and left unanswered: these very small retailers need specific solutions to enable them to overcome this cascade of crises. What has been done up until now has been nothing more than short-term support, ill-suited to these types of businesses. Today, our public leaders need to hear that they need more structural measures that take into account the way they operate", explains Eric Mertz, President of the Fédération Nationale de l'Habillement.
"Retailers have been weakened by successive crises, and the foreseeable consequences of the current health crisis call for the immediate implementation of support measures commensurate with the stakes and risks for businesses and their employees. This mobilization of all retail partners is essential, and the government must help to ensure that it is put in place as quickly as possible, so that those involved are as well prepared as possible to face the weeks ahead. It's important for commerce and it's important for the regions", says
Emmanuel Le Roch, Managing Director of Procos, the French federation for the promotion of specialized commerce.
About the Trade Alliance :
Alliance du Commerce brings together the Union du grand commerce de centre-ville, the Fédération des enseignes de l'habillement and the Fédération des enseignes de la chaussure. It represents 27,000 stores and 180,000 employees in the personal goods sector.
For further information: https://www.alliancecommerce.org/
Press contact: Hélène Baratte // Communications Manager // Tel: 01 40 15 60 71 - 06 29 61 88 90 //
Mail: hbaratte@alliancecommerce.org
About Fédération du Commerce Coopératif et Associé (FCA) :
Commerce Coopératif et Associé is the leading independent retail group in France. This form of networked commerce (sales outlets, services, etc.) enables independent entrepreneurs to group together and pool their resources and know-how, with the aim of setting up joint actions and tools. Owners of their own businesses as well as
of their network/brand, the entrepreneurs of the Commerce Coopératif et Associé are the actors and decision-makers. The vast majority of these groups are organized as cooperatives. In 2018, Cooperative and Associated Commerce generated sales of 156 billion euros, representing 30% of French retail trade.
The Fédération du Commerce Coopératif et Associé (FCA) is the French representative body for Cooperative and Associated Commerce.
For more information: https://www.commerce-associe.fr
Press contact: Marion Furé // External communications manager // Tel: 06 83 61 25 31 //
Mail: mfure@fca-commerceassocie.fr
About the French Franchise Federation (FFF)
A major player in the dynamic French economy, the Fédération française de la franchise is the professional federation of franchisors and their franchisees. It represents the franchising model, a
model of entrepreneurship based on the transfer of know-how and the sharing of value; a solid, innovative model, a true gas pedal of entrepreneurial success.
In France, franchising represents 2,049 franchise networks, 78,218 franchised outlets, and nearly 68 billion euros in sales. The industry generates 757,852 jobs (direct and indirect). In 2009, the FFF created L'Académie de la franchise, the leading franchising training organization, dedicated to future franchisees, but also
to current and future franchisors.
For further information: https://www.franchise-fff.com/
Press contact: Stéphanie Morlan // Communications Manager //
Tel: 01 53 75 22 25//
Mail: s.morlan@franchisefff.com
About Fédération Nationale de l'Habillement (FNH)
The Fédération Nationale de l'Habillement is the only organization representing independent retailers in the ready-to-wear sector. Its mission is to represent independent clothing and textile retailers in all their diversity to French and European public authorities and business circles. The sector represented by the FNH includes 38,000 stores, 80,000 employees and sales of 17 billion euros. The FNH not only monitors and lobbies, but also anticipates and supports changes in the sector through training and information for the public concerned.
For further information: https://www.federation-habillement.fr/
Press contact: Agence Lucette // Tel: 01 83.89.14.85 //
Mails: Audrey Chantraine - audrey@lucette.fr / Cassandre Tabarin - cassandre@lucette.fr
About Procos
Procos supports specialized retail chains in the management and development of their networks. Its 300 member chains represent 60,000 stores, 750,000 jobs and 95 billion in sales. The federation analyzes the market and its evolution, animates exchange clubs, contributes to the sharing of information and to the reflection of
its members on the future of commerce.
For more information: https://www.procos.org/
Press contact: Sophie Madignier // Communications and Marketing Director //Tél : 01 44 88 95 60 //
Mail : sophie.madignier@procos.org
