Proxi in Reunion, it's an event ! The Carrefour Group's main convenience store brand began its deployment in Reunion last month. His arrival arouses keen interest, and not only among former Vival franchisees, the Casino proximity brand, which are the first to display the new Proxi sign. Following the acquisition of Vindémia by the GBH group, the Vivals of Reunion found themselves “orphans”. CARREFOUR today fills this gap by introducing to the island the name which today symbolizes the most, au plan national, the local commercial franchise : Next. It’s that Proxi, with its 1,600 points of sale, enjoys great success in mainland France. Present in both rural and urban areas, the brand has made it possible to modernize and perpetuate businesses in many outlying towns and neighborhoods. Next, it is the attraction of local commerce supported by a rigorous and powerful supply organization, and also in Reunion where the current Proxi team is working alongside merchants to prepare the change of brand in the best conditions. The Proxi franchise operates on the same principle as Vival, but with a wider range of products.. But above all, with Proxi, the commercial landscape in Reunion is now stabilized, independent traders can plan for the future. Proxi anchors itself in the Reunion landscape at the right time, that of a revival of local commerce. Renewal due to the health crisis which attracted a new clientele to local shops which the traders were able to retain. This is what declares, en substance, Alain Picard, proximity director at GBH, who agreed to comment for us on the current deployment of Proxi in Reunion. And we will particularly note the tribute he pays to the professionalism of traders at the height of the health crisis..
Meeting Leader : Au plan national, Proxi is by far the leading network of local stores in the Carrefour group. Both rural and urban, Is the positioning of the brand the same in Reunion or is there a local specificity? ?
Alain Picard : We are talking about the same positioning as at the national level. We are interested in both the urban network and the rural network. It all also depends on the requests that come to us. We are recruiting, certainly, but many people also come naturally to us. There are also those who use the Carrefour de métropole site to find out about the operation of the Proxi franchise and are put in contact with us. These traders, wherever they are installed, in rural areas or urban areas, we are ready to work with them. Our choice, it is therefore not only urban or rural, or to judge that, if there are too many rural, we need to do more urban. Non, it really depends on the opportunities, either we recruit, or people who are interested in the Proxi franchise come to our right door. The difference, maybe, with the metropolis, This is because we have a fairly significant presence of the franchise on the service station network here.. With contracts which may also be different. Some gas station managers only choose a supply contract. They want to keep their gas station sign, shop or other. Others, on the contrary, are interested in both the brand and the supply.
Proxi is appearing in store fronts. How is the deployment going? ? How is this brand perceived by the independent traders you contact? ?
Regarding deployment, we want to recover our historic establishment, namely our oldest Vival customers. They are the first to undertake the transition to the Proxi brand. They do it on the birthday or immediately. The deployment began with the Etang-Salé les Hauts store which was also the first Vival store. It is done at a regular rate of four or five establishments per month. We can't do more, but it's already not bad. Our team is fully mobilized to enable each establishment to transition to the Proxi brand under the best conditions.. There is a lot of work to be done to redesign the POS. With the installation of different POS inside establishments. We want this job done well.
Does the Proxi franchise work like that of Vival?, or are there differences for franchise traders, in terms of product offering for example ?
The Proxi franchise works the same way. What is there, it is that the private label offering, Carrefour, Reflections of France or others, is more developed than at Casino. The assortment is wider. This corresponds to what we wanted. A greater choice of products.
In addition to Carrefour’s private label, are new brands entering local stores with Proxi? ?
We can't talk about new brands. These are reserved brands, that is to say which are only distributed within the scope of the Carrefour group. Like the one in the wine department, The Augustin Florent cellar. You also have, at Carrefour, a beautiful brand, Reflections of France, dedicated to products from French culinary heritage. This brand is only present in points of sale in the Carrefour network.. You will find it at Proxi.
There was a time when mass distribution was seen as a danger to small retail.. Can we say that local store franchise networks have proven the opposite? ?
I am tempted to say that everyone has a role to play. If we take the role of a hypermarket, what is it ? It's having everything under one roof. The customer who comes to a hypermarket finds everything he needs there, from hardware to cleaning products or clothing, including the food section, etc. Nearby, we are on much smaller areas. The role of local commerce, it’s about offering as many things as possible as close to home as possible. What makes small businesses evolve? ? Formerly, thirty or forty years ago, all these small rural or urban establishments obtained their supplies from wholesalers. These wholesalers, some have disappeared, others no longer do the same supply work. The market has moved towards large-scale distribution with purchasing centers and small businesses have had to adapt. With franchise networks, modernity has caught up with them. It gives them an alternative. Old local businesses find meaning again, vitality, boosted by a large group brand which ensures them a secure supply, a broad assortment base, as well as recognition through quality products, a more modern and rewarding store layout. With the franchise, the trader becomes professional. It’s the way of doing business that’s evolving. This is what means that the local store has today become a sort of village mini-hypermarket.. The customer who goes to Proxi finds, like at Carrefour, a welcoming place, well kept, with various products, a clear offer..
What makes, according to you, the success of a local business ?
First of all, it’s its location.. It must be placed in the right place. In the past, the model which consisted of attaching a local business to a large area, thinking of them as complementary, didn't work. The location is therefore fundamental. You must choose it having identified the potential customer base that exists around it.. Another key point, the business must be easily accessible. In a city center, if it is difficult to access, he will have difficulties. In rural areas too, if it is too far from everything. What also makes proximity successful, it is of course the professionalism of the merchant and his ability to create and maintain social ties, all this relationship of trust, the advice, listening. People come, confide. For some, this is their only contact of the day. There is this whole human and relational aspect which is very important.
Consumers seem to be showing a renewed interest in local businesses with the health crisis : do you make the same observation ?
Absolutely. Au plan national, the results of Proxi local businesses have jumped over one year by more than 15% in turnover, both in the rural network and in the urban network. In the meeting, the same thing happened. This development is obviously driven by the health situation created by Covid. Due to the fact that we could no longer move around, we went as close as possible. It's logical. Which was very honest on the part of local traders, and that it is necessary to emphasize, I think, is that none of them abused this situation and took advantage of it. On the contrary, they were attentive to people's questions, they took the opportunity to create a bond, to reassure, restore confidence. And what happens ? At first, you limit your travel because you have to, you stop at the local store because you have no choice. After, you come back because you discovered a business that suits you. You know that you will find a welcome there, of choice, product quality, quality of services. Local traders have been able to stand out from the crowd by highlighting their ability to do business. They were able to convince new customers to continue coming to them.
In a city, we talk about “multi-service stores” Proxi. What does this mean and are you developing the same concept in Reunion ?
It all depends on where the business is located, what services exist around and what the daily needs are. Take the example of the gas cylinder. If you live far from any gas station, it is very complicated to obtain, we have to go a long way, it takes time. We made an agreement with an oil company to establish, in stores that wish it and where it is justified, an automatic gas cylinder dispenser. This is a typical example of the response to a vital need that a local business can provide. : because without gas, we can no longer cook. There is also the sale of stamps which avoids going to the Post Office. There is the whole bakery and pastries section : not everyone has a baker near their home. The local store can offer fresh bread every day, as well as a minimum assortment of pastries. the possibilities are numerous : a merchant can be a Kiss relay and make keys… It really depends on the location of the business, of its environment. customer expectations. Because the service can arise from demand. In all cases, multi-service must respond to a clearly expressed need. It is not a question of launching into services that would require a little material investment without being assured of the return.. But if it's additional, if it’s good for turnover, we think it’s worth the trader’s time to think about it. Without forgetting, what, for stores larger than others, it can also be a source of employment.
The organic market continues to grow. The Proxi brand sells organic Carrefour products. Will this also be the case in Reunion? ?
Yes, it's entirely possible. All order lines for these organic products are open to local traders. They can do it. After, we must still consider that organic necessarily costs more. For the fresh, it's complicated to set it up. On the other hand, for everything canned, biscuits, all products that can travel by boat, prices remain affordable. But you have to have the clientele for that. Organic, it's a bit of a way of life. You have to see which organic products may interest your local customers. But we can advise traders on this subject too. We have the rankings, we know what sells. We also tested an organic Vival, mostly in rural areas : it must be recognized that local organic farming is difficult. This is the lesson we learned from it. You really have to have customers.
Are there plans to develop a Proxi loyalty card locally? ?
It is the merchants who decide whether or not to create such a card.. It is their responsibility. But if they want, they can in fact deploy a loyalty card. More, here again, we have to see what need it can meet. A loyalty card assumes significant attendance. But it can also be a way to keep your customers, to be able to encourage purchases through rewards, promotions or goodies. Of course, it's possible. Some gas stations, Besides, do it locally. It’s up to the merchant to decide if it can be useful to them..
Comment collected by Olivier Soufflet and photo Anakaopress
