Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Brenninkmeijer Family Runs C&A Across Generations
Transcript
- Lucas: So you know those big, slightly dusty C&A stores you see on high streets across Europe? The ones with the reasonable jeans and the yellow logo that looks like it hasn't changed since the 70s? Luna: Oh absolutely. I grew up near one in Brussels. My grandmother bought all her coats there. It felt eternal — like a post office or a church. Lucas: Right. And that's exactly the point. C&A was founded in 1841 by two Dutch brothers named Clemens and August Brenninkmeijer — the C and the A in the name. It has stayed under family control ever since, through nine generations. That's almost 185 years. Luna: Nine generations. That's insane. Most family businesses don't make it past the third. What's their secret? Lucas: Well, one big factor is that they never went public. No shareholders to answer to, no quarterly earnings pressure. That gives them the freedom to think in decades, not quarters. But the more interesting part is how they manage succession internally. They have a written family constitution — and a rule that no CEO serves longer than seven years. Luna: Only seven years? That seems short for a family business. Usually you get lifers. Lucas: Exactly. But the Brenninkmeijers argue it prevents any one person from entrenching themselves. The CEO — always a family member, by the way — rotates out after seven years, often moving to one of the family's other ventures. They have a whole family office called COFRA that manages investments, real estate, and philanthropy. So the CEO doesn't disappear; they just shift roles. Luna: So the family stays involved, but no one builds a personal fiefdom. That's smart. But what about the business itself? C&A isn't exactly known for being cutting edge. How do they survive in the age of Zara and Shein? Lucas: Well, they don't compete on speed. Zara can go from design to floor in two weeks. C&A takes more like six to eight weeks. But they compete on reliability and cost. They target families — think school uniforms, basics, workwear. They also own their supply chain pretty deeply, which gives them margin control. And they have a massive private label operation: about 95 percent of what they sell is their own brand. Luna: That's a huge margin play. If you cut out the middle brand, you can offer decent quality at a lower price. But I've read that C&A has struggled in some markets. They left the UK in 2000, and they're barely present in the US. Lucas: Yeah, they pulled out of the UK because they couldn't compete with Primark and M&S on the high street. And the US was never a focus. Their core market is continental Europe — Germany, the Netherlands, Belgium, France, and a few Central European countries. They have around 1,300 stores and about 2 billion euros in revenue. Not tiny, but not the empire it once was. Luna: So the brand feels a bit old-fashioned. Is that a problem or an asset? Lucas: Both, honestly. It's an asset because older shoppers trust it. It's a problem because younger shoppers don't. The family has tried to modernize — they launched an online store, they've done some sustainable collections. But they're not going to win a fashion war. Their strategy seems to be: be good enough, be profitable, and outlast everyone. And so far, it's working. Luna: Outlasting is literally the family motto. I remember reading that the Brenninkmeijers have a saying: 'We don't have to be the biggest, just the last one standing.' Lucas: That's the spirit. And it's backed up by an enormous private wealth pool. COFRA, the family office, is estimated to manage over 25 billion euros in assets. That includes real estate — they own shopping centers where their own stores are tenants. So even if retail margins get squeezed, the family still collects rent. Luna: That's a hedge within the business structure itself. If the stores struggle, the property still pays. That's brilliant. Lucas: And the family also runs a major philanthropic foundation called the Porticus Foundation, which gives away hundreds of millions a year to education, climate, and refugee causes. It's funded by a slice of C&A profits. So the business isn't just about making money — it's also the engine for a very large charitable operation. Luna: That's a really different model from, say, the Mars family or the Ferrero family we covered earlier. The Brenninkmeijers seem to treat the business more as a vehicle for family purpose than as a profit-maximizer. Lucas: Right. And that philosophical difference is key to their longevity. They're not trying to maximize shareholder value. They're trying to maximize family continuity and social impact. The business is a means, not an end. Which sounds noble, but it also imposes discipline. If you're not trying to squeeze every last cent of profit, you can afford to make decisions that hurt short-term revenue but protect the brand. Luna: Like staying out of fast fashion's race to the bottom. Or keeping stores open in smaller towns even if they're less profitable. Lucas: Exactly. Now, let's talk about governance. The family has around 2,000 living members — that's huge. Only about 20 to 30 of them work in the business at any given time. The rest are shareholders who receive dividends but don't have a say in day-to-day operations. There's a family council, a supervisory board, and the CEO is chosen from a pool of qualified family members. If no qualified candidate exists, they'll bring in an outsider — but that hasn't happened yet. Luna: That's a lot of family to keep happy. How do they avoid infighting? Lucas: They have a family charter that everyone signs, and they hold regular family assemblies. They also have a rule that shares can only be sold to other family members — so ownership stays inside the clan. That prevents a cousin from cashing out to a private equity firm and diluting control. And the dividend policy is conservative: they reinvest most of the profits back into the business or into the foundation. Luna: So the family members who don't work there still get a steady income, but they can't cash out big. That aligns everyone with the long term. Lucas: Precisely. And it's worked for 185 years. But there are challenges. The current generation — the ninth — faces a retail landscape that's brutally competitive. Online giants, discounters, shifting consumer values. C&A has been slow to embrace e-commerce and sustainability transparency. Some critics say they've been too conservative. Luna: Are they at risk of becoming irrelevant? Lucas: Not imminently. They have a loyal customer base, strong cash flow, and a real estate portfolio that would be worth billions on its own. But the clock is ticking. If they don't attract younger shoppers, they'll gradually shrink. The family seems aware of this. They've started a separate brand called 'Clockhouse' for younger demographics, and they're testing smaller store formats. But it's an open question whether the family can pivot fast enough. Luna: I want to ask about the philanthropic angle. The Porticus Foundation — is that unusual for a family business of this size? Lucas: It's unusual in scale. Most family businesses have a foundation, but it's often a side thing. Porticus is one of the largest philanthropic foundations in Europe, with an endowment in the billions. They fund projects in over 80 countries. The family sees it as a way to 'give back' but also as a way to involve family members who aren't interested in retail. You can sit on the foundation board and have a meaningful role without running stores. Luna: So it's a retention tool for family talent too. If you don't want to sell jeans, you can still contribute to the family legacy through philanthropy. Lucas: Exactly. And it reinforces the family's values, which are deeply Catholic. The Brenninkmeijers are devout — they've been described as 'merchant princes with a social conscience.' Their business decisions have always been influenced by their faith, which is another reason they avoid certain practices like aggressive tax avoidance or selling products they consider harmful. Luna: That's a pretty strong moral compass. But it must create tension when business efficiency conflicts with values. Lucas: Sure. For example, they've been criticized for not paying higher wages in some developing-country factories. The family responds by pointing to their long-term presence in those regions and their investments in worker training. It's not a perfect picture. No family business is. Luna: Right. I think the lesson here is that continuity requires trade-offs. You can be nimble or you can be durable, but it's hard to be both. Lucas: And the Brenninkmeijers have chosen durability. They've accepted slower growth, lower margins, and a smaller market share in exchange for staying in control and staying true to their values. Whether that strategy holds for another 185 years remains to be seen. Luna: I think one of the most telling details is that the family refuses to put the C&A name on their foundation or their family office. They deliberately keep a low profile. Most billionaires want a building with their name on it. These guys seem to want the opposite. Lucas: Yeah, the Brenninkmeijers are famously media-shy. They don't give interviews, they don't appear on Forbes lists voluntarily. The Porticus name is Latin for 'doorway' — it's not obviously connected to the family. That anonymity is part of their survival strategy. If nobody knows who you are, nobody comes after you. And it also discourages family members from seeking fame, which can destabilize a dynasty. Luna: So that's probably the smartest thing they do: stay boring, stay private, stay united. Easy to say, incredibly hard to execute across nine generations. Lucas: Absolutely. And with that, I think we've scratched the surface of the Brenninkmeijer story. If you want to go deeper, I'd recommend the book 'The Brenninkmeijers: A Family Portrait' — it's the only real deep dive on them, and it's fascinating. Luna: I'll check it out. And as always, if this episode was useful to you and you want to keep it ad-free, buy me a coffee dot com slash fexingo helps. We don't run ads — that's a deliberate choice. If you want to support that, that's the place. Lucas: Yeah, it genuinely makes a difference. And it keeps us free for everyone. So thank you to those who already chip in. Luna: Alright, so next episode — I think we should look at a family business that's in the middle of a succession crisis right now. Something with a bit more drama. Lucas: I know exactly which one. Stay tuned.