The number one in French destocking surprised the French with this decision. Noz has announced the permanent closure of many of its subsidiary’s stores. The clearance store has nearly 325 points of sale in France. The company, which makes a turnover of 550 million eurosappears to be facing competition-related issues.
The group speaks
Noz explained on his Facebook page. The brand then clarified that the economic context of the past 2 years has caused supply difficulties. The group goes on to explain that fewer buying opportunities.
A problem that prevents them from properly supplying the 325 stores. This would be the reason for the closure of the 24 worst performing Noz supermarkets. LSA magazine notes that the brand’s new store closures were the subject of the titles of the regional press.
In the west, there were the stores of Lorient, Le Mans and Saint-Brieuc. The Woippy and Forbach stores in the Grand Est, stores in the north of the country including those in Courrières. This is a of the oldest points of sale of Empire Noz which has been in existence for 22 years.
A Forbach store in Moselle which closed its doors in September 2020. The latter had reopened in January 2022, but it is now closed again.
Competitors gain ground
Could the closure of its stores be linked to the two competitors of the destocking giant ? The other destocking store brands are booming in France.
The Dutch group Action for example managed to install nearly 700 stores in 10 years. The British giant B&M, which bought the Babou brand, is already in 110 municipalities.
Competed by Action and B&M, the French Noz suddenly closes 24 stores https://t.co/L3WLSTb1LV via @bfmbusiness
— daniel levi (@daniellvi14) September 19, 2022
These so-called newcomers are just follow in the footsteps of the French brand created since 1976. These other brands have almost the same concept in their product as Empire Noz.
They mainly offer destocking products, unsold promotions or end-of-series products. They offer various equipmentmake-up, groceries and also decoration products.
The competition is fierce and the brands compete to be able to offer the best assortment to their customers. A few years ago, the destocking market only had a few brands.
The arrival of foreign brands overshadows the historic Noz. A consumer specialist noted a lack of product to supply stores. The latter explains that those that remain open are not properly powered.
In Sains-en-Gohelle, for example, the Lens store settled two years ago. The supermarket is already seeing the opening of an Action store, a few kilometers from its location. A fifth establishment of the Action group in the Lensoise region.
The employees felt it coming…
According to certain observations, the activity of the brand is steadily declining. The flagship store in the Pas-de-Calais which was at the head of the Noz group lost 24% of its turnover. In 2016, the supermarket had sold over 1.5 million products.
Six years later he only sells 1.17 million products. However, the market for destocking brands is in full swing. In 2021, this represented nearly 12 billion euros in France.
The consequences are felt among the employees of the supermarket. In early September, staff explained that they were only aware two or three days before closing. One said they hadn’t had a delivery for days.
“We pay the accumulation of bad years”, add the employees.
Is it abouta global crisis or an adjustment in the face of supply problems? The band did not comment on it. At the end of August 2022, the leader in destocking was still on the “Capital” program on the sixth channel.
The program highlighted the success of the supermarket by talking about the excellent training of buyers at Noz. The program spoke rewards that the brand offers to its customers. This is one of the pillar techniques of the Noz empire to maintain a good relationship with its customers.
The bonuses and games that the destocking supermarket organizes internally were also mentioned in front of the M6 cameras. According to the report, he would be difficult to think that Noz might have problems.
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