They built and co-own a constellation of household brands—Decathlon, Leroy Merlin, Auchan, Kiabi, Boulanger, Electro Dépôt, and many more. Yet their model remains intentionally discreet, structured around a family association rather than a single “group,” and powered by internal capital recycling across dozens of operating companies.
In a country where debates about “capitalisme héréditaire” and fairness are constant, the Mulliez ecosystem sits at the center of a paradox: it has created jobs, consumer value, and international champions—while simultaneously becoming a lightning rod for criticism when restructuring hits, dividends rise, or the family’s opacity meets public expectations of transparency.
This article takes a balanced, business-first look at (1) what made the Mulliez model successful, (2) what is currently stressing it, and (3) why the combination of success + discretion + capital concentration so often translates into jealousy—especially in the French context.
1) The Mulliez “galaxy”: not one company, but an ownership system
A key point is structural: the Mulliez are not a classic listed conglomerate. Their ecosystem is held together through the Association Familiale Mulliez (AFM), which groups together members of the family and organizes shared ownership across many businesses.
According to reporting in Le Monde, the AFM includes 950 members and spans around 130 companies, employing more than 620,000 people worldwide, including ~175,000 in France. The same source notes that this scale would make it the largest private employer in France—if it were recognized as a single group.
That “if” matters. Because the Mulliez model rejects the label of a centralized group, preferring a federation of businesses tied by common shareholders—while unions have pushed to have AFM treated as a group to facilitate redeployment obligations during layoffs and restructuring.
Why this matters strategically: the AFM structure is not an administrative detail. It is the core of their competitive advantage… and the core of the controversy when cycles turn.
2) What made the model work: a capital + entrepreneurship flywheel
2.1 A long-term ownership mindset (with a founder logic)
The origin story (as described in the same reporting) is classic “family capitalism”: Louis Mulliez encouraged his children to create and invest in new ventures, meet regularly to share experience, and become shareholders in one another’s businesses—creating a culture of internal entrepreneurship + mutual ownership.
In practical terms, that translates into:
- Patient capital: no quarterly earnings pressure from public markets.
- Compounding know-how: retail operations, real estate, logistics, merchandising, pricing, and store execution are learned and reused across banners.
- Repeatable venture creation: a playbook for launching, scaling, and sometimes shutting down formats.
2.2 The “cash cow rotation” mechanism
The family’s success is not only about picking winners—it is about rotating the cash cow. Historically, one strong business financed the next wave of growth elsewhere.
Le Monde describes how Phildar (yarns) served as a “bas de laine” (cash reserve) for early expansion; then Auchan became a “mère nourricière” supporting Decathlon, Leroy Merlin, Flunch and others.
That model has a brutal elegance:
- When a banner matures, it generates cash.
- Cash is redistributed (dividends) and reinvested into other businesses or turnarounds.
- New banners grow into the next generation of cash engines.
More recently, the same reporting notes that Auchan France represents only ~5% of AFM value, while Adeo (Leroy Merlin and related banners) and Decathlon have become the heavyweights sustaining the system.
2.3 A culture of operational autonomy (“initiative to the field”)
Another differentiator is cultural: decentralization and “store-first” autonomy. AFM leadership argues that empowering teams locally helped them respond quickly during the COVID shock and even gain share versus Amazon in some categories.
Whether one fully buys the claim or not, the underlying management philosophy is consistent: execution at scale, with strong internal promotion and deep retail craft.
3) Why the model is under pressure now: retail physics changed
If the Mulliez story were only about success, nobody would be talking about it this intensely today. The reason it has re-entered public debate is that several prominent banners are facing structural headwinds—and the old playbook is being stress-tested.
3.1 The “overexposure to physical retail” problem
The AFM portfolio is heavily concentrated in physical retail formats—hypermarkets, specialty retail, home improvement, sporting goods, apparel, furniture. That was a superpower during the decades of “hyperconsumption.” It is a vulnerability in a world shaped by:
- E-commerce scale and platform economics
- Fast-fashion and ultra-low-cost entrants
- Customer acquisition shifting to digital
- Rising operating costs and real estate constraints
The article explicitly references competitive pressure from players such as Amazon, Shein and Temu, and the “decommercialisation” trend impacting roundabouts and city centers.
3.2 High-profile difficulties: Auchan, Alinea, Foundever
Recent headlines have amplified the perception of fragility:
- Auchan announced plans to transfer nearly 300 French supermarkets under Intermarché/Netto banners—interpreted as an admission of failure after years of losses and market-share erosion, with hypermarket uncertainty still looming.
- Alinea entered judicial reorganization again, threatening around 1,200 jobs.
- Foundever (ex-Sitel), employing ~150,000 globally, faced a debt restructuring process in the U.S., described as heavy “surgery.”
These situations are not identical—but they converge into one reputational effect: when a “discreet empire” hits turbulence, the public narrative quickly becomes moralized.
3.3 Governance tradeoffs: loyalty vs turnaround speed
Le Monde also highlights a recurring critique from observers: the family may excel at conquest but struggle in crisis, relying heavily on internally promoted leaders and maintaining confidence “against all odds” longer than outsiders would.
From a transformation perspective, this is a classic governance dilemma:
- Internal promotion preserves culture, craft, and loyalty.
- External turnaround talent can accelerate painful decisions and new capabilities.
- But mixing the two requires a governance maturity that many family systems resist until a crisis forces the issue.
4) So why the jealousy? Four drivers that are uniquely “French”
Jealousy is rarely about the facts alone. It is about what people believe those facts represent—fairness, legitimacy, symbolism, and power.
4.1 The visibility gap: “big enough to shape lives, discreet enough to avoid scrutiny”
The Mulliez are frequently described as living by “pour vivre heureux, vivons cachés.”
That discretion is rational from a family-risk standpoint. But it has a cost: in the public eye, discretion often reads as avoidance—especially when restructuring impacts thousands of employees.
In other words: when you employ massive workforces and shape entire local economies, people expect a level of transparency similar to listed groups, even if the legal structure is different.
4.2 Capital concentration + inheritance in a country sensitive to inequality
France has a long-running cultural tension with hereditary wealth. The Mulliez model is, by design, a mechanism to preserve and compound family capital across generations. Even if it creates economic value, it triggers the perception of an “unfair starting line.”
That perception intensifies when contrasted with ordinary household constraints: wages, taxes, inflation, housing costs. The psychological math is simple: “they win even when the rest of us struggle.”
4.3 Dividends, wages, and the optics of redistribution
Nothing inflames jealousy like a number. Le Monde notes union criticism at Decathlon regarding €1B in dividends (compared with €787M net profit in 2024), while also noting that part of the dividends benefited 60,000 employee shareholders and that AFM injected €400M (2024) and €600M (2025) into Auchan.
From a finance standpoint, this can be framed as internal capital allocation and mutual support. From a public standpoint, it can be framed as “cash out to owners while stores cut costs.” Both framings can be partially true depending on what lens you use.
4.4 The “group or not a group?” tension in social expectations
When unions argue the AFM should be treated as a single group to enable redeployments between sister companies, they are making a broader point: if capital is shared, then social responsibility should be shared too.
This is a deep French expectation: large economic actors are expected to behave as “institutions,” not merely collections of private assets. The AFM model challenges that expectation—and that creates friction.
5) A fairer assessment: why this isn’t just “rich family = bad”
It is easy—especially in polarized narratives—to turn the Mulliez story into a morality play. A more rigorous view recognizes tradeoffs.
5.1 They created real consumer value at scale
Decathlon democratized access to sport. Leroy Merlin and Adeo built household renovation capabilities and accessible DIY distribution. Kiabi pushed affordable family apparel. These aren’t abstract financial constructs: they are practical value propositions used daily by millions.
5.2 They built jobs—and a management pipeline
Retail is often dismissed, yet it remains one of the largest employment engines. The AFM system is also a talent factory: store leadership, logistics, procurement, category management, omnichannel operations. That operational discipline is rare and transferable.
5.3 They accept “creative destruction” internally
The same reporting highlights a Schumpeterian “creation-destruction” process: some formats fail (Pic Pain, Surcouf, etc.), some recover after long struggles, and cash cows rotate.
In plain terms: they don’t pretend every bet will work. They keep funding the system until something else wins.
6) The strategic lesson: the model must evolve (without losing its edge)
The real question is not whether the Mulliez family “deserves” its success. The question is whether a retail-centered ownership system can remain dominant under new market physics.
6.1 Data and ecosystem moves: Valiuz as a signal
One of the most telling evolutions is the move to share customer data across banners to compete on advertising targeting and platform capabilities—formalized via Valiuz (officialized in 2019), after difficult internal negotiations.
This is strategically coherent: retail margins are under pressure; monetizing data, media, and ecosystem services becomes a defensive and offensive lever—if executed well.
6.2 The next governance challenge: the fifth generation
Le Monde notes periodic introspection exercises about where the family wants to be in 20 years, and flags the arrival of the fifth generation as a key upcoming challenge.
Family systems become harder—not easier—over time: more shareholders, more branches, more divergent views on risk, tech, liquidity, and social responsibility. Sustaining performance requires stronger governance, not just stronger operators.
Conclusion: admiration and jealousy can be two sides of the same coin
The Mulliez ecosystem is a case study in how to build durable economic power: patient capital, decentralized entrepreneurship, operational excellence, and internal reallocation of cash between banners.
But the same ingredients also generate backlash in France: discretion collides with social expectations; dividends collide with wage debates; “not a group” collides with workforce redeployment demands; inherited ownership collides with cultural sensitivity to inequality.
In the end, the jealousy is not only about wealth. It’s about perceived legitimacy—and legitimacy is earned not just by performance, but by transparency, social reciprocity, and the ability to show that success scales benefits beyond shareholders.
Question for leaders and policymakers: As retail transforms and restructurings continue, should systems like AFM be encouraged as long-term value builders—or regulated as de facto groups with broader obligations? The answer will define not only the Mulliez trajectory, but the future shape of French capitalism.
Olivier Delestre-Levai 