Funny contrast: a week after Ukrainian President Volodymyr Zelensky asked Auchan or Leroy Merlin to leave Russia, sparking controversy in France, the EY-Parthenon firm announced that the DIY specialist was the best-loved brand of French over the past year, as in its previous ranking.

However, the 9,500 consumers questioned in this annual ranking were in January, before the outbreak of the Russian invasion of Ukraine on February 24.

Asked by AFP about its possible impact on the next ranking, EY-Parthenon did not wish to comment.

This nevertheless raises the question of the cost in terms of image and reputation for the groups that remain in Russia.

“The dilemma is substantial for the Mulliez family and there is no miracle cure in the short term,” said Adrien Guerin, analyst at Scope Ratings, recently.

Staying in Russia could "taint the reputation" of brands "in other countries", up to a "boycott".

"No Calculation"

More broadly, "beyond the financial damage which is obvious, there is indeed a reputational risk", even if it is very difficult to assess as it stands, confirms Bertrand Chovet, general manager France of the firm specializing in the evaluation of BrandFinance brand.

On average, he explains, "reputation scores are lower for banks or telecoms than for cosmetics, food or distribution".

The impact can therefore be harsher for companies with the best image.

A woman walks in front of a Leroy Merlin store in Moscow, Russia, March 24, 2022 NATALIA KOLESNIKOVA AFP

However, "people also understand that there are employees, an ecosystem on essential goods, particularly on food... The impact on the reputation of brands is there, but there could also be criticism in the case where the signs would abandon their "Russian" employees, he believes.

The signs of the Mulliez galaxy are major employers in the country of Vladimir Poutine, 45,000 employees and 113 stores for Leroy Merlin, 30,000 employees and 232 stores for Auchan, 2,500 employees and 60 stores for Decathlon - these have however closed their doors, lack of supply.

A source close to Leroy Merlin, questioned on the risk of maintaining activity in Russia for the image of the group, believes that "the decision is not arbitrated like that, but according to these 45,000 employees".

If the brand is, according to this source, "attentive to what is being said, there has been no calculation on the impact in terms of image" of its decision to stay in Russia.

A source close to the Auchan group believes for its part that the food distributor "does not care about the reputational risk", that its subject is "to manage to do its job" by feeding the Russian and Ukrainian populations.

Neither Leroy Merlin nor Auchan wished to comment on this subject.

The two sources cited above believe that the call for a boycott, launched in particular by the Ukrainian Foreign Minister concerning Auchan, has only a very limited impact.

According to a good connoisseur of large retailers who requested anonymity, calls for a boycott are rarely heard in this sector: "It's a habitual activity, it's much harder to go shopping elsewhere than to switch from a brand or a product", which can be relatively easily replaced by another brand, for example.

© 2022 AFP