Auchan invests in online operations

Jon Wright
Head of Insight - RA EMEA
@RetailAnalysis

Date : 20 July 2020

As Auchan partners with Glovo for four European markets and extends the reach of its click and collect services in Poland, we round up news from the retailer.

Auchan signs partnership with Glovo

Auchan, after a trial with the delivery company in Portugal and Ukraine, has said it is set to formalise its partnership with Glovo in the two countries and extend it to Poland, and Spain. The trials saw Glovo deliver from 20 stores in Ukraine, since May 2019, and from a store in Lisbon, Portugal. The two companies have said they could extend the service to other countries in future.

Auchan said the COVID-19 pandemic had fast-tracked its plans in the online channel, with its partnership with Glovo set to ‘accelerate [its] roll-out of express food delivery and is using its points of sale to make this practical service available to as many people as possible’. From summer 2020 shoppers in an 8km radius of select stores will be able to buy products from Auchan through the Glovo app. Auchan staff will collate the orders in store, with delivery completed by Glovo. The whole process will enable shoppers to receive their orders in an hour.

Auchan extends click and collect service in Poland

Separately in Poland, Auchan has added click and collect services at six hypermarkets in Poland. The launch will enable shoppers to use a distinct web site to order from a range of more than 6,000 products across all key categories and collect their orders at one of the six stores at a time convenient to them. Payment is made on collection of the orders, while the service itself is being offered initially for free.

Auchan reduced capital expenditure in Spain in 2019…

Following on from revealing its consolidated 2019 results, it has been revealed that Auchan invested €39.4m in Spain during the year. The amount the retailer invested in 2019 was down 64% on that it spent in the country in 2018. Auchan added 17 new stores in 2019, taking its total to 339, with much of the money invested in upgrading and renovating stores, its digital transformation and instigating sustainability measures.

…While revenue rose by only 1% in Romania

Auchan generated revenues of RON5.48 bn (US$1.3 bn) in 2019 in Romania, a rise of 1.3% on the previous year. During the same timeframe it made a net profit of RON28m (US$6.6m). The retailer operated just over 60 stores in the country at the end of the 2019 financial year, with 33 of them being hypermarkets, as it grew its presence in the convenience and online channels during the year.