Skip navigation
Newswire

Retailers shrug off French truck strike for now

By Caroline Brothers

PARIS, Nov 25 (Reuters) - French retailers reported sporadic signs of disruption as striking French truckers began erecting roadblocks on Monday, but company officials and analysts said it would be several days before blockades really hit the sector.

Auchan, France's second biggest food retailer, said it had been hurt by the strike action at two of its stores in the Seine-Maritime area, near Le Havre in France's northwest.

"We have had trouble getting supplies to them because of the blockades," a spokeswoman said.

Memories of fuel rationing, factory closures and dwindling supplies of fresh food haunt the French who remember the six-day stoppage in 1997 and a 12-day strike in 1996 which paralysed traffic, stung the economy and antagonised France's neighbours.

Truckers set up about 40 roadblocks across the country overnight to press pay claims. In the first precautionary move, the Lower Normandy region in northern France rationed petrol.

But retailers said any disruption so far was minimal and oil oil company TotalFinaElf said it was still getting deliveries through to petrol stations and supermarket pumps across France.

The strike had little immediate impact on share prices.

"Supermarket groups will only be affected, like everyone else, if the strike spreads or if road blocks continue for days," said analyst Jean-Etienne Pierre at KBC Securities.

Supermarkets can last for about two days before perishable products run out, and some companies drew comfort from having set up contingency plans.

"It's shopkeepers, fishmongers and small restaurant owners above all who will be affected at this stage," said one retail analyst, asked about the blockades at wholesale food markets like Min de Lomme near Lille and another in Bordeaux.

"We have road blocks by truckers nearly every year at about this time and it never really hurts the food retailers."

NORTHERN BLOCKADE COLLAPSES

Some relief came for retailers in northern France after the blockade at Min de Lille, the main food distribution market for the north, collapsed before midday after irate non-union drivers threatened violence if they could not enter the market.

Last week food retailers were involved in a separate quarrel with French farmers who blocked fresh food supply centres in protest at pressure on margins from the big retail chains.

Carrefour shares dropped 1.85 percent to 43.93 euros at 1508 GMT on Monday and smaller French rival Casino was down 1.22 percent, in line with the Dow Jones Stoxx retail index, which was off 1.35 percent.

Neither Carrefour, the world's second biggest retailer after Wal-Mart, nor Casino would comment on the truckers' action. Shares in carmakers Peugeot and Renault were also softer -- Peugeot off 1.62 percent at 45.59 euros and Renault 1.06 percent weaker at 49.34 euros.

A 10-day lorry drivers' dispute in 1992 also forced carmakers Renault and Peugeot to halt production temporarily.

"If the blockade contines, the whole economy will suffer and we are not 100 percent immune, but at the moment there is absolutely no disruption to our production," a Renault spokeswoman said.

But Renault added that it had stocked up on parts and only 10 lorries out of its entire national fleet were blocked.

Next in the firing line after storekeepers and restaurants are catering companies like Sodexho Alliance and Elior . One analyst said Sodexho provisioned its cantines in hospitals, companies and schools about twice a week and was concerned its food deliveries could he affected. Sodexho shares softened 0.31 percent while Elior rose by a similar amount. (Additional reporting by Rebecca Harrison and Marguerita Choy)