Auchan continues global strategy roll out

Date : 12 April 2018

As Auchan’s local operations announce a range of developments, we look at the developments being made at a country level to embed the retailer’s global strategy.

Auchan to close stores in Italy

After announcing disappointing results in FY2017 for its Italy-based operations, Auchan has said it will close hypermarkets in the country. Around 20 hypermarkets are said to be under consideration for potential closure. The retailer has struggled in Italy more widely, while the hypermarket format specifically continues to underperform for many retailers and Auchan more explicitly. Auchan said the stores will close in April, with one, in Naples, to be sold to a third party.

Discussing the step, Auchan Italy’s general manager, Américo Ribeiro, said: “At the moment a process of physical and digital transformation of our network is under way, with the convergence to a single banner and developing our brand strategy.” Riberio said the strategy required Auchan to make sure it was investing in long-term, growth opportunities.

Auchan China and Tmall Supply enter supply agreement

Following on from its announcement in Q4 2017, Auchan China and Tmall Supply have entered into the Auchan Tmall Supply Agreement. RT Mart has said that it believes cooperating with Tmall will enable it to source products it did not have access to before and will improve the range available in Auchan stores in China. The agreement will last for nine months and acts retrospectively from 1 April 2018 to 31 December 2018.

Auchan to discontinue local brands in Portugal

After a period of speculation, Auchan Portugal has confirmed that it will only use the Auchan brand in future. The development will see it phase out the Jumbo and Pão de Açúcar brands. Speaking at an event, Auchan Portugal’s general manager, Pedro Cid, said: “We have taken the Auchan brand because it is international, adapts to our profile and mirrors what we want to build in the future, a more digital brand.”

Cid said Auchan would invest around €90m across 2018 and 2019 on three areas: adding between 30 to 40 new stores in the next two years (with about €40m to be invested), rebranding old ones (about €5m) and upgrading existing sites (about €40m). New stores will be under the MyAuchan banner, measuring between 300 sq. m and 600 sq. m and build out the retailer’s presence where it operates hypermarkets. The new stores will have a strong digital element, with ranges focused on three key areas: chilled, organic and health and wellness ranges.

Auchan to expand in Ukraine

Following on from its acquisition of the Karavan chain and the start of the rebranding process in the country, Auchan has said it will open its first supermarket in April 2018. The retailer has said the 3,500 sq. m store will focus on shoppers’ everyday needs, while also supporting their top up missions and providing a café with food-for-now options. It will also look to offer shoppers a wider range of global foods. Auchan said the design of the new store will be built following shopper feedback and meet their future shopping needs. The retailer has said the format will be rolled out during 2018, initially in Kyiv.