Auchan’s evolving strategy in CEE

Date : 04 July 2018

As it looks to turnaround its performance in Russia and implement its single brand strategy across the region, Auchan has announced a set of initiatives to drive change across its businesses in Russia and Ukraine.

New store sees offer being adapted in Russia

Discussing the opening of a new store, Auchan Russia’s head of HR for supermarkets, has said it is being used to test innovations in areas across personnel, its offer and how it is replenished. The new supermarket has seen counters – for meat, fish and cheese – added back in and the addition of a café to widen the range of reasons shoppers visit the store. The café offers a range of ‘standard’ products, but also healthier items, like smoothies and detox-focused drinks.

The updated store is in Krasnogorsk, a city and the administrative centre of Krasnogorsky District in Moscow Oblast, and represents one of Auchan core supermarkets in the Russia. As such, the test is aimed at meeting the needs of an ‘average’ shopper living within five to 10 minutes’ walk of it, rather than trying to attract a different shopper base. The store’s renovation took only three weeks, underlining its scalability. In addition to the new counters etc., the new store sees the use of electronic price tags, the enhancing of IT to support sales analysis, pricing and ordering and the implementation of a new supply system to enable more deliveries per day.

Private label ranges evolving in Russia

As part of its private label strategy, Auchan is set to develop three sub-brands within its hierarchy to provide shoppers with choice. The retailer said it is undertaking the change after shopper research showed people only associated it with its ‘Every Day’ brand, with others being separate, rather than part of its overall private label offer. To change this Auchan has said it will launch three levels, with the rebranding process to begin in 2019 and take two years.

In Ukraine, Auchan adds express delivery points…

According to the company, Auchan Ukraine has added Nova Poshta express delivery points in all its supermarkets in the country. The counters are being added to its hypermarkets as well, enabling shoppers to use Nova Poshta’s services at its stores. Nova Posta is a provider of express delivery services in Ukraine, with the points enabling Auchan shoppers to collect online non-food purchases in its stores.

…And opening MyAuchan stores too

As it looks to build its multichannel strategy in all the countries it operates, Auchan Ukraine is set to open its first MyAuchan convenience stores in the country. The stores, which are under the Topmart brand, will be rebranded to MyAuchan. The two updates stores will open by the end of July and provide shoppers with a wider range to meet their top-up and food-to-go needs. Auchan said the stores will provide pre-prepared meals, grilled chicken, pizza baked in-store, bakery products prepared in-store and a café offer. Shoppers will also be able to pick up orders made online from Auchan’s non-grocery offer.