Frozen food retailer Picard Surgeles is taking a major shift in its development strategy, by expanding its French network via franchise agreements, according to French media.
Picard, owned by British investment fund Lion capital owns 925 stores in France and intends to expand its retail network not only by opening up to 25 stores which will be managed by the company, but also by targeting rural areas with fewer inhabitants, via franchise agreements.
“To run such a team of franchise stores, we need a capable team and now we have one,” said President Philippe Dauze, quoted by Le Figaro. He added that a franchise expansion will allow the frozen food specialist retailer to better penetrate rural areas, by opening stores with an average sales area of 150-200sqm, half of the size of a regular Picard store.
The company currently has a market share of 18% of the total retail frozen food market and its president said he believes there is ample room for expansion.