France protests loss estimates: As demonstrations enter third week, how much retailers could lose if shops remain closed | Today’s news
Peaceful student protests that began in France in September over teacher shortages, underfunding and deteriorating school conditions have spread to include public anger over the government’s handling of the high cost of living and turned violent. As the demonstrations continue, with clashes and looting occurring in some cities, the impact is beginning to be felt.
From popular tourist attractions such as the Louvre, Musée d’Orsay, the Picasso Museum and the Grand Palais, to the closure of retail stores amid fears of further looting and damage, the riots are disrupting tourism and commerce. Hotel bookings in Paris have been hit, while retailers across the country are estimating massive losses from damaged and looted stores.
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How much could French retailers lose if protests continue?
According to Euronews, during the protests on 17-18 At least 3,000 French stores were hit in October. While insurers said they were mobilized, lost business may not be covered, depending on whether businesses have business interruption insurance.
Insurers did not disclose the number of claims filed after stores were looted, nor did they provide an initial estimate of losses during the 17-18 protests. October By comparison, the 2023 riots that swept the country in June and July resulted in insured losses of 793 million euros, according to France Assureurs. Insurers processed around 17,000 claims with an average payout of around €46,600. Shops and commercial real estate accounted for two-thirds of the total, or roughly €523 million. Almost 200 million euros, a quarter of the total, covered the losses suffered by local authorities following attacks on town halls, schools and buses. The remaining seven percent were vehicles.
On 19 October, the CEO of French supermarket giant Carrefour, Alexandre Bompard, who also chairs the FCD retail federation, estimated that around 1,500 stores were affected. He estimated the industry’s losses at several hundred million euros. The supermarket giant itself reported damage to at least 50 of its stores, including 20 that were looted.
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On October 21, shares in Carrefour, which is also France’s largest listed retail group, fell more than 13% after the company warned that violent protests across the country could hurt its profits, AFP reported. The retailer estimated the unrest would reduce its operating profit by 80 million to 200 million euros ($90 million to $225 million) for the year.
How did French businesses prepare for new weekend protests?
According to Reuters, luxury retailers across France covered their shop windows with boards and brought in private security guards ahead of the October 24 demonstrations. Some also planned to remain closed after extensive looting during the previous weekend’s riots.
Staff at a Rolex retailer and a De Beers store near Place Vendôme in Paris said the stores would remain closed on October 24. Other retailers, including Richemont-owned IWC, planned to assess the size of the demonstrations before deciding whether to close them early.
On the Champs-Élysées, Adidas and Boss posted closure notices on boarded-up windows. Staff at Swatch Group stores said they would reduce their trading hours.
Metal cages surrounded the Lacoste store, which suffered “enormous” damage last week, according to an employee. The branded cafe was also fully boarded up.
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Separately, employees at LVMH brands Louis Vuitton, Dior and Bulgari told Reuters they were taking no chances and had increased security at their stores near Place Vendôme. The group has also deployed additional private security to patrol upscale shopping districts.
With further demonstrations planned, retailers face continued uncertainty over store closures, security costs and lost sales
(with input from agencies)
