France-based Auchan exited the Italian market and sold 1,600 stores to Conad in 2019. This saw the latter implement a rebranding strategy. Meanwhile, Esselunga has purchased six Auchan stores from Conad in northern Italy, while we provide an overview of Conad’s developments since its acquisition of Auchan’s stores in Italy.
Conad’s latest developments
The retailer has rebranded 27 Auchan hypermarkets to Conad, with a reduction of sales area to fit Conad’s business model. In November 2019, Conad rebranded 66 Auchan supermarkets with no redundancies. In addition, Conad has announced a further 56 supermarkets will be rebranded in Q1 2020, which will implement Conad’s operational model.
Francesco Pugliese, Conad’s CEO, states ‘The integration of the network will increase the presence of the local product and the Italian spirit to which 6,991 local suppliers are contributing today...’
The group plans to integrate Auchan stores at a pace which suits the business, so Conad does not damage the company during the integration process. Conad has five regional headquarters, the company claims it can apply the knowledge and skills available in the Auchan headquarters such as; middle management and local managers.
Esselunga acquires six Auchan stores from Conad
Esselunga recently acquired six Auchan stores from Conad, located in Lombardy and Emilia Romagna. The sale intends to reduce the number of redundancies of Auchan employees. Esselunga plans to complete the acquisition in January 2020, as part of its development framework.
Overview of Conad’s acquisition of Auchan
Conad acquired Auchan’s Italian assets, seeing it purchase 1,600 stores across a range of formats, including hypermarkets, supermarkets and convenience stores, and 18,000 employees.
An Italian union declared a strike across the entire Auchan Italia network on 30 October 2019, which related to claims that Conad offered a lack of commitment to the future of Auchan’s employees. For more information involving Conad’s integration plans please see our article here.
Conad has been selling stores to reduce the impact of redundancies across Auchan Italia. Carrefour Italia purchased 28 Auchan stores in northern Italy in December 2019. Conad has faced difficulties in the northern territory, which led to it selling some Auchan stores. To read more about Carrefour purchasing Auchan stores from Conad, please see our article here.
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