Members of Intermarché in Belgium are coming forward with stories of chaos within the group following the takeover of Mestdagh. They say that shopkeepers are paying the price: the first bankruptcies are already a reality. Management denies this, saying that the figures are excellent and the logistical problems are behind them.
Tens of millions in debt
To the outside world, Intermarché’s strong growth in Belgium has been a success story so far. But there seems to be a downside. Several stores have recently gone bankrupt or closed their doors: Morlanwelz, Auvelais, Jette, Rhisnes… At least seven others are said to be under judicial protection and more bankruptcy filings are expected to follow. Some 25 retailers are said to have hired lawyers in proceedings against Intermarché. Several stores have requested a valuation with a view to a sale. By July, a dozen former Mestdagh supermarkets that have not yet found a buyer (and are now supposedly being operated “en portage,“which means that they are considered independent points of sale but do not have a permanent adhérent ) may be forced to close their doors.
At least, that is what emerges from conversations RetailDetail had with several Intermarché entrepreneurs who complain about what they say are years of mismanagement at the Musketiers. According to them, the takeover of the Mestdagh group from Gosselies in 2022 – which was then the master franchisee of more than 80 Carrefour Market stores – caused chaos at the retailer, which was not internally prepared for a doubling of its activities. The independent entrepreneurs are paying the price for this. In total, the shopkeepers have accumulated tens of millions of euros in debt with the group over the past three years. An untenable situation.
“We want to warn prospective entrepreneurs”
In a detailed analysis, the entrepreneurs explain how Intermarché is passing on the debt and invoices to its shopkeepers, the majority of whom are now deeply in the red. There is a lot of anger, but also fear, as several testimonies mention a climate that is perceived as very tense by some of the members.
Various practices of the group raise questions, according to our interlocutors. “That’s why we’re going public,” we hear from one member. “We want to warn prospective entrepreneurs. After all, the group is now actively looking for buyers for a whole series of stores. They paint a rosy picture, but the candidates don’t know what they’re getting into. The market studies are far too optimistic, the margins are too low to be profitable, and the organization is dysfunctional.”
The entrepreneurs seem determined to take on their cooperative. One entrepreneur shows us stacks of printouts of internal memos, incorrect order and delivery notes, and emails. “I have sent thousands of documents to my lawyer,” says another. “I can prove everything.”
“Growth ambitions remain intact”
However, the Intermarché management does not recognize itself in these stories. Over the past two years, the group has achieved excellent growth figures with virtually the same number of stores. That would be impossible with a faltering logistics system, say executive director Arnaud Meyrant and member Benoît Debusschere in an interview with RetailDetail. The former Mestdagh stores that were converted to the Intermarché concept have managed to double or even triple their turnover, bringing the average turnover per square meter for the entire park almost back to the level it was at before the Mestdagh takeover.
The fact that the group is still in the red in Belgium is a logical consequence of the large investments associated with the takeover and the renovations, according to the retailer. The Musketeers’ growth ambitions in Belgium remain intact: several store openings are planned for the coming months and years, possibly also with new formats.
You can read more about the complaints of some dissatisfied Intermarché adhérents in the article “Did Intermarché Belgium make a mistake with the Mestdagh takeover?”
You can read the detailed response from the management of Intermarché Belgium in the article “With the acquisition of Mestdagh, Intermarché Belgium has gained twenty years.”
