RetailAnalysis
21 February 2017
Auchan building out multichannel capabilities

In separate developments, France-based Auchan has looked to support its multichannel capabilities in its home market and Romania. Meanwhile, in Asia, Sun Art, in which Auchan holds a stake, has reported FY results showing the growing importance of initiatives supporting it shift to an online to offline-focused strategy.

Auchan trialling home delivery service in Bordeaux

According to reports in the trade press, Auchan has begun a trial of a home delivery service from a Drive site in Bordeaux. The service is offered in conjunction with the start-up Colisweb, which already works with rival Franprix, and enables shoppers to receive orders in two hours. Delivery is free for orders over €180, while a charge of €5.90 will be made on orders between €120 and €180 and of €11.90 for those between €60 and €120. To encourage and support the buying of larger baskets, orders of under €60 are not available for delivery.

The extension of the offer, to include home delivery, is aimed at enabling further volume to be driven through the existing site. The trial, if successful, could be expanded and help support a more efficient Drive model for the future. The home delivery model is also becoming more visible in France as rivals look to compete with and prepare for Amazon’s expansion, with this solution helping Auchan compete.

Auchan to add forecourt stores in Romania

In Romania, Auchan announced it would open stores on petrol forecourts in conjunction with OMV Petrom. Although the first stores under the agreement could open in 2017, no firm timings have been given. The cooperation was described by Auchan as ‘a pilot project’ and is part of its ambition in the country ‘to be a multichannel and multiformat company’.

Sun Art enjoys strong growth in 2016

Sun Art Retail said that revenues rose 4.2% to RMB100.4 bn (US$14,592m) in its 2016 financial year. The retailer said results were driven by the opening of 38 hypermarkets, two small format stores under the “HiAuchan!” and “Lavia” fascia and improvements at its online to offline operation.

For more on the retailer’s performance in China, see our coverage here.

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