System U head administrator issues signage shutdowns in emotional outburst
A Stir in French Retailing: Dominique Schelcher's Outburst Against "Unfair" Competition
In a bold move, Dominique Schelcher, the System U CEO, has spoken out against what he perceives as unjust competition in the French retail market. After the collapse of stores like Camaiëu, Naf Naf, Go Sport, Kookai, and now Jennyfer – with the loss of 1,000 jobs – he's calling for action, lighting a flame in the retail sector.
"This isn't just a rant – it's a heartfelt cry!" exclaimed Schelcher on RMC this Tuesday. He's frustrated by the indifference to Jennyfer’s liquidation, and he's asking for more mobilization and support. He questions why there aren't more protests for the retail sector, especially when women make up 83% of the workforce in ready-to-wear.
Schelcher compared the stoicism towards Jennyfer’s collapse to the uproar caused by job losses at ArcelorMittal. He also condemned the "silent social project" that's overlooked in the retail sector.
Targeting Foreign Players and E-commerce Giants
Venting on Twitter, Schelcher decried, "In France, we don't like commerce!" He singles out foreign retailers and e-commerce platforms like Shein, claiming that they're exercising unfair competition. He contends that traditional retailers struggle to compete fairly with some actors, often based abroad.
Schelcher points a finger at hard-discount chains and e-commerce that have inundated France with foreign products, not always regulated in the same way. He specifically references Shein, a Chinese giant bringing in €1.6 billion in annual revenue, but paying a meager €273,000 in taxes in France[1]. This sum is less than a typical Super U store – putting traditional retailers at a disadvantage.
The Heart of the Matter
Dominique Schelcher is rallying for a fairer trade environment in France. His concerns are rooted in three key factors:
- Taxation Disparities: Shein, a prominent e-commerce platform, pays substantially less tax than traditional French retailers [1].
- Political Neglect: Schelcher criticizes the government for seemingly underprioritizing retail concerns, contrasting support for agriculture and industry with that for retail [1].
- Uneven Competition: Schelcher highlights the challenge for traditional retailers to compete with discount chains and e-commerce platforms, many of which enjoy favorable conditions compared to French businesses [1].
Schelcher's passionate plea echoes a growing concern over the future of French retail. As the market transforms, traders will have to adapt or face extinction. This outspoken CEO's call for greater support and a level playing field may echo in the halls of power and beyond.
- Dominique Schelcher, the System U CEO, expressed his frustration with the liquidation of Jennyfer, calling for more action and support within the French retail industry.
- Schelcher pointed out the disparities in taxation between traditional retailers and e-commerce giants like Shein, stating that these differences create an unfair playing field.
- In response to Schelcher's criticisms, he was met with accusations that he was attacking foreign businesses, but he maintained that he was advocating for a level playing field in the French e-commerce sector.
- With the rise of e-commerce and foreign competitors, Schelcher believes that traditional retailers may soon face extinction unless they are ready to adapt their businesses to compete in this new industry landscape.
- As the retail sector undergoes significant change, there is a growing need for financial assistance and support from the French government to help these businesses remain competitive in the market.
