In an interview in local trade publication LSA and in a subsequent press release, Auchan France has set out how it is aiming to implement the key initiatives set out in the 2022 transformation plan.
Retailer to focus on five strategic priorities
In the interview with LSA, Auchan Retail France’s chief executive, Jean-Denis Deweine, set out how it was looking to drive growth by concentrating on five main areas:
- Improve the offer: with more focus on local and exclusive or artisanal products and private labels
- Update its hypermarkets
- Develop digital proximity through the opening of further Drives and pedestrian Drives
- Evolve the supply chain
- Transform business models to adapt to new tools, ways of working and jobs
Future proofing the hypermarket is key…
Deweine highlighted the need for the hypermarket format to evolve to meet changing needs, playing a role at the centre of a multichannel strategy, rather than just as one part. He said the format could support other stores, with space used to prepare fresh products for Auchan’s supermarkets or used as fulfilment centres for home deliveries. Finally, he noted that further space could be reallocated to third party brands, as it has been doing recently.
…Alongside the need to accelerate digitisation efforts
To drive growth and lessen its reliance on its hypermarkets, Deweine said Auchan’s aim was to reduce the share of sales accounted for by the format to 50% by 2025, down from 75% today. To do this, he noted, it will require the retailer to quicken the pace of evolution and drive growth at its supermarkets and digital channels.
In relation to digital efforts, Deweine said in H1 2020 Auchan France had seen 12% of its sales accounted for by Drives or home delivery. He said it wanted to increase this share to 15% by 2022, with the pedestrian Drive playing a key role in that shift. To support this, more standalone pedestrian Drives will be open, especially in key urban areas, while Drives will be added to more hypermarkets and supermarkets too.
Unified logistics to support efficiency
Auchan said it would also look to combine the logistics of its different formats, especially its hypermarkets and supermarkets, which are currently run separately. It said the step would create several benefits, including a unified management of the supply chain under one team who had end-to-end control of it.