How Dominique Schelcher Calmly Conquered Leadership After the Fiery Serge Papin

Fire and ice. When Dominique Schelcher took the helm of the U Cooperative in 2018 after Serge Papin, the Alsatian appeared as the exact opposite of the Vendéen. His predecessor was fiery, while he is calm; Papin was known to turn the table upside down, Schelcher prefers to set it; the former boss was a socialite, almost a bohemian; the successor wants to embody rural life. Taking over from the man who had pushed the market share above 10% for the former Système U was thus a significant challenge for Schelcher. Six years later, the 54-year-old man has been re-elected unanimously on June 24 to lead the distributor with 34 billion euros in revenue, for another term of the same duration. It is evident that he has successfully followed in Papin’s footsteps.

Another strength of Dominique Schelcher is the internal transformation he initiated at the brand, effective yet non-disruptive. Reflecting the new name of the group that he chose in 2024 (from Système U to U Cooperative), the leader has successfully implemented changes that, while not breaking with the past, have been pivotal. First, on the question of acquisitions. While this topic had previously been taboo among the U’s, Schelcher positioned himself on interesting files for this group that does not have a central holding with strong financial capacity – unlike Intermarché or Carrefour. He successively acquired two solid networks, Migros France and Schiever, as the market consolidated around the fall of the Casino group. Here again, success is on the agenda: U Cooperative has scooped up several hundred million euros in additional turnover, and now almost touches 13% market share, two points more than at the beginning of Dominique Schelcher’s tenure.

Another smooth turn was that of pricing. While U hypermarkets are the most competitive against the E.Leclerc powerhouse, they did not previously have a discount image. While Serge Papin publicly advocated for an end to the price war, Dominique Schelcher jumped into it, determined to change the image of his brand, still perceived as expensive by consumers. Numerous advertising campaigns have thus been conducted, such as the “fortnight of ultra-low prices” or the “150 products at cost price.”

On the political front, he has embraced the need to negotiate forcefully with manufacturers, and defended his choice to join – for a short duration – the mega-European central Everest. Schelcher has also pushed for a reform of the so-called Egalim laws to enable more negotiations with manufacturers, where his predecessor focused his political speech on the remuneration of farmers. Here too, it’s a means of engaging in the price war.

Second challenge: remaining competitive on pricing. While the three leaders negotiate their rates with major manufacturers directly at the European level and within powerful purchasing centers (Eurelec for Leclerc, Eureca for Carrefour, Everest for Intermarché), U Cooperative buys alone. Does this mean that the fourth player in the sector risks falling behind its competitors? For now, it remains the runner-up to Leclerc, according to the Distriprix index by expert Olivier Dauvers. However, the gap between the two champions of price in June was 4.5 points, against 2.8 points in January. Dominique Schelcher will have to find ways to drive his prices down.

Last challenge: that of his succession. While the departure of Serge Papin did not go smoothly – the latter having worked for a time alongside Auchan, leaving a taste of betrayal for U associates – Dominique Schelcher will need to address the question of succession. By being the only candidate for his re-election, the Alsatian has managed to avoid all the political crises inherent in cooperatives of independents, where each store owner has a say. However, he will need to ensure that the end of his second term does not lead to a clan war, like the one Intermarché experienced in 2022, before the return of its emblematic leader Thierry Cotillard.