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Synergies
Coop Takes Over Jumbo – DIY Store Locations Uncertain – Up to 500 Positions Could Wobble
What does the explosion of the Swiss hardware industry mean to staff? An extrapolation shows: Nothing good. But Coop decides.
A huge explosion in the hardware store business: Coop takes over the 40 giant branches of Geneva-based Maus Frères Holding.
Large takeover deals in Swiss retail have become rare, aside from the Globus sale of Migros last year. But now Coop has surprised the industry: the Basel-based cooperative has taken over the Jumbo DIY store with 40 branches and 1,500 employees of Maus-Frères-Holding in Geneva. It also owns the Manor department store and several fashion brands such as “Lacoste” and “Gant.”
For Jumbo employees, the news is bad news just before Easter weekend. Coop says no closings are currently planned. In any case, the retail giant has yet to wait for approval from the Federal Competition Commission (Weko).
But it is clear that Coop was looking for synergies in “due diligence”, that is, in-depth examination of the possible object of purchase, but also duplication. And here they are. According to information from CH-Media, there are about 15 Jumbo branches in the vicinity of Coop’s “Construction & Hobby” stores. In total, Coop has 73 of its own locations with a turnover of almost 700 million francs.
The worst-case scenario from an employee point of view would be the closure of these 15 locations. What would that mean for the staff? According to its own information, Jumbo has a total of 1,500 employees. It is generously estimated that 200 to 300 employees should work at the head office in Dietlikon ZH, in purchasing, marketing and administration. 1200 are for sale. In simplified terms, the 15 locations would mean up to 450 positions. And since there are likely synergies at head office too, worst case scenario is likely to wobble 500 positions.
Coop does not want to confirm the extrapolation. A spokeswoman says: “The Jumbo branch network ideally complements Coop Group locations.” Regarding the question of whether the Jumbo name will be retained, specific statements cannot yet be made due to Weko’s pending decision.
Jumbo spokesman Daniel Hofmann says: “No comment, because at the moment everything is pure speculation.” In fact, the number of employees varies depending on the size of the branch. Furthermore, even if the deal were approved, Comco could impose conditions that would at least temporarily limit the threat of decommissioning. It’s also reassuring from a staff point of view: Coop is not known as a brutal job killer and always tries to find socially acceptable solutions.
The question is why Maus Frères wants to sell the Jumbo DIY chain. Didier Maus, Chairman of the Board of Directors, can be quoted as follows in the statement: “It was very important for us to find a new, strong employer with a long-term vision for Jumbo employees, as is the case with Cooperative.”
Maus Frères wants to focus on the core business and DNA of the holding, namely the Manor department store chain, which is in the midst of a recovery process, as well as the fashion brands under the MF Brand Group umbrella. These include “Gant” and “Lacoste”. In recent years, Maus-Frères-Holding had already separated from the sporting goods retailer “Athleticum”, the furniture stores from “Fly” and the music stores from “Citydisc”.
These commercial formats had to face a strong competitive environment. Jumbo, like the entire residential and construction market sector, is currently flourishing. Hobby gardening was booming during the shutdown. And with the home office regime in place, this is unlikely to change too quickly. Coop was also able to increase “Construction & Hobby” sales in Corona 2020 by 10 percent. The lawn mowers, potted plants and chainsaw businesses have proven resilient to crises. The online trend is weaker here. Because for heavy equipment, many customers still prefer to go to the local shop with personal advice.
CH Media knows: Jumbo made very good profits before and during the crown crisis. And the prospects are still good. “Coop may have offered a price that Maus Frères could not refuse,” says a source. After all, Coop has the necessary financial strength, also thanks to the high profits of 539 million francs last year. And Coop had to prevail against other stakeholders, which probably pushed the purchase price even higher. However, the deal makes sense from Coop’s point of view, according to the source. Because in Switzerland it has become difficult to open new hardware stores because they need a lot of land and parking spaces.
Then Coop snapped.
