Carrefour wants to bring ED brand back to life

Carrefour wants to bring ED brand back to life

Carrefour is silently preparing to relaunch its former discount brand ED. About a third of the acquired Dia stores in France would be turned into Ed stores, while the remainder would become a Carrefour.

ED to Dia and back to ED

According to our colleagues at Linéaires, Carrefour has reregistered the ED trademark on 12 February. The name, short for European Discount, is a well-known name in France: its stores were around from 1975 to 2012, when it was transformed into Dia, a discount chain that belonged to Groupe Carrefour until 2011 and returned to the flock in June 2014.

 

Gérard Lavinay, Dia France's CEO since December 2014, now thinks that only 60 to 70 % could return as a Carrefour store. At the pace of one store per region and per month, the remaining 200 - 300 Dia stores would be turned into ED stores, starting from April.

 

Linéaires believes the new 'old' formula would be a mixture of a discounter and a cash and carry, targeting regular customers and professionals. That particular mixture is similar to what Carrefour Spain's Supeco launch in 2012, a formula to fight the crisis. Supeco currently has 12 Spanish stores and has also launched in Brazil and Romania.

 

Turnover growth above 10 %

Labour unions have said that Erteco, which manages Dia in France, had a 2014 loss of more than 100 million euro. These new plans should help turn things around: the new ED stores should help reach a turnover growth of more than 10 % in its first year.

 

The other store formulas should reach growth of more than 10 % for the larger Dia stores (which would become Market stores), 19 % for the smaller Dia stores (which would become City stores) and even 24 % for the smallest Dia stores (which would become Contact stores).

Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top