Large, international French retailer Adeo creates 12,500 new employees at its South America retailers Leroy Merlin and Obramax
To curb employee turnover in its stores, French retail group Adeo, the parent company of Leroy Merlin and Obramax, has extended its employee stock ownership plan to all of its workers. In Brazil, 12,500 employees are eligible.
Employees with more than three months at the company will receive the equivalent of €466 (R$2,900) in shares—the same amount regardless of position or length of service. New rounds of stock grants will occur annually, tied to the group’s growth performance.
As Adeo is a privately held company owned by the Mulliez family—which also owns Decathlon and Auchan—the valuation will be determined by auditors, CEO Thomas Bouret explained.
Shares become fully vested after three years, provided the employment relationship remains active. The program gives employees the option of either investing the shares in the Valadeo employee shareholding fund or cashing them out.
According to Mr. Bouret, the goal is to encourage employees to remain long-term shareholders. To that end, the company will grant a 20% bonus in shares to those who choose to reinvest through Valadeo.
“Our aim with this culture is to keep people for 20 years—to have them join Leroy and retire here,” said Ignacio Sánchez, CEO of Leroy Merlin Brazil.
Based on current growth rates, a worker could accumulate the equivalent of €10,000 (R$62,500) over a decade by staying with the company and participating in the stock program, Mr. Bouret noted. “It’s a matter of social fairness—of giving people the chance to build long-term assets, to buy a home or invest in education,” said the executive, who has been a shareholder for 28 years. “I feel like an owner of the company,” he added.
Adeo’s employee share ownership program has existed for more than 50 years, but it did not previously include all job categories or all 13 countries in which the group operates. That changes now, following an agreement with the founding family to allow employee ownership to rise to as much as 15% of total capital, up from 12.5% today.
Behind the strategy lies the challenge of retaining employees—a growing concern that leads to rising costs for hiring and training. Adeo’s global turnover rate stands at 15%, but reaches 30% per year in Brazilian Obramax stores, the group’s cash-and-carry brand.
The expansion of the share program represents an investment of €83 million (R$519.1 million), equivalent to the cost of opening five new Leroy Merlin stores. “For us, it’s an investment just like a store or infrastructure,” Mr. Bouret said. “We know it will be a major competitive differentiator in retail.”
With the rise of e-commerce marketplaces and the growing use of artificial intelligence, the group sees its workforce as its main differentiator. “The only differentiation we’ll have will be our people and their training,” Mr. Bouret says, noting the importance of retaining talent.
The group expects global growth of around 4% this year. Although the European construction materials market is contracting, Adeo has managed to expand and maintain sector leadership. “The Iberian Peninsula is doing extremely well and driving results,” said Mr. Bouret, while France remains stable despite the current social and political situation. The country faces instability as Emmanuel Macron’s government comes under pressure.
In South America, Adeo operates only in Brazil, which accounts for 10% of global revenue. Leroy Merlin is expected to grow 3% this year, reaching R$9.5 billion in revenue, according to Mr. Sánchez. Obramax, in turn, forecasts R$2.5 billion, representing 60% growth for the brand, which celebrated its tenth anniversary this year, said Michael Reins, CEO of Obramax.
Mr. Reins originally planned to open eight new stores by the end of 2025, but now expects only three. Ten units are currently in operation. “Expansion is always a big challenge,” he noted, anticipating stronger growth in 2026. Mr. Bouret’s long-term ambition is to reach 100 stores in 20 years.