British businesses say yes to Normandy

By Sally-Ann Voak on June 1, 2010

Normandy is getting a business boost from the UK with a record number of British firms choosing to set up in the region. Nearly 50 UK companies have established themselves here in recent years, from distribution firms to high-street shopping outlets.
Between them, they have created almost 5,400 new jobs – and 16 of the firms employ more than 100 staff.
New arrivals include fashion chain New Look, which has opened a shop in Rouen and logistics giant Wincanton, with three installations here.
Battery Megastore, a car and boat battery distributor from Tewkesbury, Gloucestershire, opened a warehouse near Caen 14 months ago.
Deputy manager François Vidal said: “Normandy is the perfect place to set up, with the ports so near the UK, and plenty of customers.
“We employ two people at the moment but business is good, so we will be expanding.”
Mr Vidal said it was important in these difficult economic times that businesses seek out markets.
The British investment has been welcomed by Normandie Développement, a not-for-profit organisation which promotes the region to businesses.
The group’s international operations director Jean-Jacques Foignet told The Advertiser: “Le Havre is the number one industrial port in France and our English friends are so close so it’s obvious more of them will be coming here and opening up businesses.
“We have deliberately made our website English-friendly to give firms plenty of assistance.
“If the new Tory/Lib Dem administration encourages UK-based companies to invest abroad, we are more than happy to put Normandy on the map.”
New Look head of international marketing Nicolas Reynaud said the company’s expansion into Normandy had been a success. As well as Rouen, stores are planned for Caen and Le Havre.
“We are so glad we chose the area,” Mr Reynaud said. “But promoting women’s fashions in Normandy is very different from selling clothes in London’s Oxford Street.
“We started with focus groups and surveys and we now monitor our customer base with regular fashion shows and promotions.
“We pitch sales at each of the different types of women in Rouen. For instance, on Wednesday afternoons, students come to the store. We offer a special student card, and make sure the younger, cheaper items are well displayed at the front counter.
“On Saturdays, it’s a family day in the city, and women come in with partners and children. The clothes reflect this.
“Sizing is important too. We have introduced a size six in France, which wouldn’t sell in Britain.”
British firms are now the third most important source of foreign investment in Normandy, after the US and Germany.
Normandie Développement, which is jointly funded by the government and the Haute- and Basse-Normandie regional councils, says it is trying to attract all kinds of business to the region, not just big players.
Mr Foignet said: “We are especially interested in metal-working, the cardboard industry, textiles and ecology projects. Already established are printing, ceramic and glass manufacturers and distributors, IT companies and plastics.
“He said the start-up costs of running a business in France can be lower than in Germany or the UK.
“People worry about the cost of employing staff here,” he said, “but one thing to consider is that wages in France include social contributions such as welfare, retirement and unemployment insurance, so the employer does not have to contribute towards these separately.”
He also emphasises that there are good financial grants available for British investors in Normandy. It is also possible to get temporary exemption from business tax.
“We can help with everything from finding a location to legal and tax advice,” Mr Foignet added.