Is Esselunga just a peach?

30 September 20237 months ago babelfish

The uniqueness of Esselunga is a result of its successes, political relations, the work culture that permeates it, the strong meritocracy and, above all, the "master's eye" that always kept watch. The comment by Mario Sassi, curator of the Work Blog-notes

All this fuss over the new Esselunga advertisement was imaginable. Fierce criticism, threats of boycott, accusations of using the advert to shift attention towards a vision of the family with a strongly traditionalist flavour. The social media bubble has been unleashed. Those in favor and against faced each other with no holds barred. My immediate comment was: “It creates contrast and sparks discussion. Impact on sales? I do not believe. Outrage and approval were expected. However, it amplifies the brand's awareness in a context where the signs all look the same. On the merits, it's not up my alley but it hasn't left me indifferent." I leave the debate on the effectiveness to the marketing experts and the extremists of the internet to fight on the topic.

SPOTLIGHT ON GROUP

I'm interested in returning to Esselunga. And on how the large-scale retail trade is experiencing this moment where the spotlight suddenly turns on its actions as never before. Let's not forget the anti-inflation pact, the political role that the sector, unaccustomed to, will find itself playing, the repercussions in the coming weeks triggered by the real, or presumed, investigations into compliance with the signed agreements. The inevitable cunning of those in the sector who think that everything is essentially the same as before the pact and that their freedom of action will not be affected too much. Let us never forget the habits and the overall entrepreneurial and managerial composition. So we'll see some good ones.

WITH THE ADVERTISEMENT ON FISHING, ESSELUNGA RETURNS TO THE CENTER OF THE POLITICAL SCENE

The first thing that came to mind is that, wherever the author of “Scythe and Cart” may be at this moment, Bernardo Caprotti, will be smiling with satisfaction. That advert would have been "culturally" in his style. Esselunga, few have understood, with that advert, and with what preceded it and what followed it, returned to the center of the political scene. As it has always been in the past. It explicitly positions itself as a true and safe interlocutor, meeting point and mediation with the forces that support the Government in the management of the Pact itself if something needs to be adjusted during construction.

With a food industry objectively weakened due to its hesitations at the Government table and a large-scale retail trade taking risks in the management of the Pact itself, an important company with a charisma recognized by politics is no small feat. In some ways this commercial is the first real and visible sign of the passing of the baton between the old and the new corporate generation on a political level. I would add that the only time that the current ownership of Esselunga "threw to the left" with the famous commercial on the "fight against high prices", a vaguely '68 slogan, was a bloodbath for company margins. It is therefore better to avoid slip-ups by re-proposing one's recognized role.

THE AGREEMENT REACHED WITH THE FIGC

Esselunga's relational system is central. The agreement reached with the Italian Football Federation (FIGC) for the next four years of sponsorship and the agreements with CONI and with the Milan-Cortina 2026 Winter Olympic Games testify to the solid political and institutional relationships. I don't see any other large-scale retail trade companies capable of competing with Esselunga on this level. LIDL and Conad are still one step below. The first is working to build the recognition it deserves. The second, rather than relaunching its political leadership, risks returning to old paths at the wrong time. Coop, for historical reasons, prefers to move downwind with this Government.

A leadership over the entire large-scale retail trade that Caprotti senior exercised with a certain roughness of character on the association system and which, with his exit from the scene, seemed to have been lost. With this political majority, he forcefully returns to the field. This advert rides a (perhaps) minority but growing cultural wave in the country. Hence the strong reactions for or against. I wasn't even surprised by Prime Minister Giorgia Meloni's tweet of approval ("I read that this advert would have generated various controversies and protests. I find it very beautiful and touching").

ALIGNMENT OF VALUES WITH THE CULTURE EXPRESSED BY THE POLITICAL FORCES THAT SUPPORT THE GOVERNMENT

The alignment of values with the culture expressed by the political forces that support this Government is evident. There are those who have naively put the 2016 Ikea advert as an alternative with also realistic stories of divorced parents who express a totally different vision than that of Esselunga. Obviously Ikea's didn't raise any fuss then. Other times and another context. The proposed theme is secondary. I am convinced that others equally incisive will follow. The spot is the finger. The moon is the centrality of the Milanese brand.

ESSELUNGA MANAGEMENT CONVINCED WITH THE ADVERTISEMENT

Personally, I really don't think that those who approved it underestimated the consequences. Among other things, the commercial is being sent these days to all Fidelity customers, confirming the management's and ownership's belief in the operation itself. I don't think that knowing the thoughts of the owner of the place chosen to do the shopping is crucial for the customers who frequent it. The book “Falce e Carrello” had already clarified the position of Esselunga and the company's performance has continued to improve since then. A good reason to avoid painting scenarios that take their time.

Like it or not, that culture represents the real glue between the old management and the new. The slimming down of part of the old management, the attention to costs (especially for staff) which makes life difficult for managers in the stores, the difficulties in logistics, are problems common to the entire large-scale retail trade "besieged" by discounters and the nomadism of consumers. Esselunga chooses to reaffirm its uniqueness in the panorama of large-scale retail trade in its own way by taking back the scene.

THE UNIQUENESS OF ESSELUNGA

The uniqueness of Esselunga is a result of its successes, of the political relations, of the work culture that permeates it, of the strong meritocracy and, above all, of the "master's eye" that was always vigilant and that fattened the horse of the old popular proverb . Unfortunately, not all of these characteristics are confirmed today.

Feeling at the top of the class is not enough. The world around us is changing and this creates internal nervousness that is difficult to hide. The comings and goings of managers bear witness to this. Then managing human resources by renouncing true high-level professional management will make the difference. Especially in times where so-called "talents" are being developed internally to replace some more experienced managers and at the same time reduce personnel costs. Different pieces not always easy to match. Esselunga, after having closed with the external CEO who should have led the change, chooses to propose what it has always been. For now he has scored a point in his favor. But the game is still to be played.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/esselunga-e-solo-una-pesca/ on Sat, 30 Sep 2023 05:02:55 +0000.