Leclerc: Michel-Edouard controls the supermarket

Paris For most French people, Michel-Edouard Leclerc is as present as politicians, musicians or sports stars. The son of the founder of the Leclerc supermarket chain is constantly on TV. MEL, as he is known, talks about purchasing power and inflation and advocates for consumers while touting the chain’s cheap products.

The always tanned Frenchman has more media coverage than most CEOs, sometimes appearing on radio or television four times a day. He also has his own blog. For the past weekend, the last of the school holidays, he has announced petrol in his chain’s petrol stations at cost price.

He doesn’t mince his words and proclaims his opinion on business and politics. He repeatedly criticizes food manufacturers who have raised prices too much. He controls the company with his media presence. “As long as I’m not totally old, I will represent the group in the media,” said Leclerc.

The influence of the 70-year-old seems formally manageable: his family sold their name to the Leclerc shops cooperative in 2004, they no longer hold any shares and do not own any shops.

Leclerc himself only works on account for the group. He has been President of the Strategy Committee since 2019 and is therefore more of an advisor than a boss. Nevertheless, the charismatic Leclerc was voted “the most popular boss in France” in a ranking by “Forbes” magazine. He draws his power from media attention. “The public still thinks I’m the boss of the Centers E. Leclerc” , he amuses himself.

50

billion euro

The Leclerc supermarkets generate sales per year.

Michel-Edouard Leclerc points the way from the shadows

The magazine “Marianne” jokingly calls him the “Robin Hood of purchasing power”. Liberation newspaper quoted an unnamed competitor as saying: “Leclerc’s only job is communication, which he excels at.”

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Although the family has sold its shares, the patriarch from the shadows points the way for the 16 regional heads of the group with 140,000 employees and around 50 billion euros in sales a year. The cooperative is made up of independent markets that have agreed on a common strategy. The strategy committee, headed by MEL, keeps the ensemble together.

In view of his advanced age, Leclerc is apparently already working behind the scenes to preserve the family’s influence, the French business newspaper “Challenges” recently reported. His four children are largely unknown to the public, two of them are said to be active in the group of companies. Since the family no longer has any shares, they actually have no voting rights. But as long as Leclerc continues to be the face of the group, he can work to ensure that his children take on his “inheritance”.

“It lasts because its message of low prices and defending purchasing power is constant” Magali Picard, business journalist

The company heir continues to use his public influence to advertise Leclerc. “It is staying because its message of low prices and defending purchasing power is constant,” writes business journalist Magali Picard, who published a book on Leclerc. The key question: “Does he really let us save money?” Leclerc is not a businessman and not a boss: “But he still has influence, that’s clear.” She describes him as likeable, but also calculated.

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His presence alone influences the further strategy at Leclerc. He himself takes a similar view: “I’m friendly, benevolent, but if you challenge me in a fight, I’m a good fighter and I win,” he once said.

A year ago, Michel-Edouard Leclerc announced in the media that he would sell the baguette for 29 cents in order to maintain purchasing power. Bakers, who usually charge more than one euro for a baguette, reacted angrily and even went to court – and lost against him there.

chain is the market leader in France

The success of the supermarket group, which was founded in 1949, is mainly due to its aggressive pricing strategy. Long before the discounters, Leclerc negotiated hard with their suppliers to push through price reductions. These often have to deliver their products more cheaply than to other groups.

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More than 700 shops in France, but also in Poland, Italy and Spain provide the necessary purchasing power. To this day, the Leclerc supermarkets boast that they are at least four percent cheaper than the competition in the immediate vicinity.

This image, which the company founder also cultivates in the media, is paying off: According to data from the market research company Kantar in January 2023, the group was the market leader in France with a 22.4 percent share, well ahead of Intermarché, U and Carrefour and even further ahead the German discounters Lidl or Aldi. The market share has increased by more than five percent over the past 15 years.

22:4

percent

The Leclerc supermarkets have market share in France.

Leclerc is not only influencing the prices. He was also an early advocate of environmental protection. As early as 1996, he decided that there should be no more single-use plastic bags in the group’s stores – in France, they have only been officially banned since July 2016. In 2006, Leclerc was the first supermarket in France to offer fair trade products.

Despite his media presence, the multi-billionaire keeps his private life largely secret. He has a keen interest in culture and has sponsored numerous cultural festivals in France, including the Angoulême Comics Festival. He is also an avid sailor, tennis player and hiker.

Leclerc, who studied politics, economics and philosophy at the Panthéon-Sorbonne University in Paris and has a doctorate in economics, originally wanted to be a journalist. In 1978, however, he began working for the Leclerc Group – initially with lobbying. From 1988 to 2005 he was co-president, together with his father Edouard. In 2006 he took over the office alone

At first he was smiled at as the son of the company founder. But his successes against powerful opponents earned him respect within the group: Leclerc broke the monopolies for petrol, over-the-counter medicines and cultural products in France. His forward-looking strategy and media presence make him indispensable to Leclerc to this day. He will also hardly leave his successor to chance.

More: Why branded products are often much more expensive – and who makes the most money from them.

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