To start a business within a network and thus benefit from the expertise and reputation of a brand, franchising is not the only possible model. Several hundred networks are developing into groups or cooperatives.
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Associated commerce weighs heavily in the French economic landscape: the equivalent of 7% of GDP , according to the Fédération du commerce coopératif et associés (FCA). With 178 different brands and nearly 45,000 points of sale , this branch of commerce differs from integrated networks since it brings together several independent traders and franchise networks under the same brand through its particular operating method. Because as its name indicates, associated commerce brings together "associates" according to the principle of "one person equals one vote". In other words, where in a franchise system the head of the network retains control over the essential elements of the brand's strategy and gives franchisees the right to duplicate its concept in return for the payment of royalties, the traders of groups or cooperatives are shareholders of the brand and make decisions collectively.
Around thirty sectors of activity
The fields of action of associated commerce are vast and cover around thirty different sectors. In the food sector, we find in particular brands like Leclerc, Intermarché or Système U, Biocoop in organic food distribution and Netto in hard discount; in optics, networks like Atol les Opticiens, Krys, Lynx Optique or Optic 2000; Intersport and Sport 2000 in the field of sports and leisure; Point S in the automobile sector; Poivre Rouge and Best Western in the hotel and restaurant sector; Orpi and L'Adresse in real estate… The examples of brands known on a national and sometimes international scale are legion. In total, the 178 associated commerce brands bring together 32,430 entrepreneurs and employ more than 540,000 people . To undertake via this model, the opportunities are therefore numerous.
Associated trade resists crises
In 2015, retail chains together achieved a record turnover of €146.9 billion, up 3% compared to 2014. This is a remarkable achievement when compared with the performance of the retail sector as a whole, which the FCA estimates to be up 1% on average over the same period. Overall, retail chains have consistently performed better than average over the past twelve years, with a positive growth rate each year. Including during the years when retail trade declined or stagnated, following the financial crisis (-0.2% growth in 2008 vs 4.9 for associated trade, 0% in 2009 vs 0.9%, then a further decline in 2013 with -0.5% for retail trade vs +3.1% for associated trade, the same in 2014: decline of 0.4% vs +1.01%).
This is enough to reassure industry professionals about this entrepreneurial model. " We are crisis buffers and growth accelerators ," declared FCA President Eric Plat, also Chairman and CEO of Atol les Opticiens, during the press announcement of the associated retailer's annual results on May 24.
6,000 businesses to be taken over
The vast majority of groups and cooperatives have been growing in France for several decades. For many independent retailers who joined the adventure early on, the time has now come to retire. As a result, "more than 6,000 associated retail outlets will be looking for buyers in the next 5 years," summarizes the FCA. That is, each year, nearly 1,200 business takeover opportunities arise throughout France. This is an opportunity to seize for any aspiring entrepreneur with the necessary capital for this investment—because a turnkey takeover of a store, complete with its equipment, customer database, and teams, generally costs more than starting from scratch—and who wants to get off to a quick start.
Article published on the Le Parisien website in partnership with Les Echos de la Franchise