Auchan: investing for its Vision 2025

Date : 05 September 2018

As Auchan looks to continue to embed its Vision 2025 strategy, we look at developments in Hungary, Poland, Russia and Spain where it is investing for the long term.

Auchan expanding its private label range in Russia

Auchan Russia has relaunched several of its private label products with new packaging to make them stand out on-shelf as part of the evolution of its strategy in the country. Aimed at improving their quality perception with shoppers, the product’s packaging has been updated, with pricing taking them into the mid-tier and premium price brackets. Mid-tier ranges will be packaged with a red design, while the premium range will be gold. The relaunched products will appear in all its hypermarkets first.

Auchan completes its business integration in Poland…

After announcing plans to integrate its businesses in Poland, as part of its efforts to simplify its operations and streamline them under one banner, Auchan has said it has now completed the initiative. Auchan Poland said the step was key to helping it build ‘excellence in omnichannel retailing’ and would benefit both employees and shoppers.

…While in Spain it expands its presence in proximity formats

In its half year results Auchan highlighted the positive performance it was seeing in Spain, driven by its proximity formats in the country. While rebranding existing stores under the Auchan name has been key, a part of the strategy has seen it open new sites. To this end, the retailer has opened two new stores, one under the Alcampo Supermercado brand and one under the Mi Alcampo banner in Madrid and Logroño respectively.

Auchan Hungary forecasts 10% in net turnover for 2018

Auchan Hungary’s chief executive, Dominique Ducoux, has forecast the retailer will see a more than 10% rise in net turnover in 2018. Ducoux made the projection as he reported that Auchan Hungary generated a net turnover of HUF309.5 bn (US$1.1bn) between 1 April 2017 and 31 March 2018, a 5.4% rise on the previous year. He also said profit after tax rose almost 6% to HUF3.8bn (US$13.4m).

Last year’s growth and the forecast for this year’s continued advance are being driven by the retailer’s store expansion programme and investment in its operations more generally. Auchan Hungary spent HUF10.0bn (US$35.3m) in 2017 and is set to invest between HUG10.0bn and HUF12.0bn (US$35.3m to US$42.4m) in the present financial year. Expansion is focused on proximity formats, such as supermarkets and convenience stores.