France-based Auchan has announced that it will not develop its drugstore chain, Lillapois in Russia. It will close one of its two Lillapois stores to focus on its hypermarkets and supermarkets in the country.

Auchan will close Lillapois store in Moscow…

Lillapois was first launched in the Troika shopping centre in Moscow in August 2016. The assortment included cosmetics, perfumery and personal care products. The range was later expanded to include household products. Today, there are two standalone Lillapois stores and a shop-in-shop in Auchan’s store in Tverskaya, Russia.

…To focus on its main formats

The retailer has said it intends to close the Lillapois store in the Troika shopping centre. It is unclear what will happen to the other store. Maria Kurnosova, Auchan Russia’s director of corporate communications, explained the company will instead focus on its main formats (hypermarkets and supermarkets) to improve the range and services they offer.

“For example, in hypermarkets it is planned to expand the departments of cosmetics, introduce brands of Korean cosmetics and luxury brands and integrate the range of LillaPois drogerie stores... the LillaPois network will not develop separately”, Kurnosova commented. Customers will still be able to purchase Lillapois brand products from the online store, however.

Want to know about Auchan’s strategic focus? Subscribers can read our insight presentation on the retailer.

Auchan has partnered with Uber Eats to extend its food offer, with its sister company Oney Bank to launch a biometric payment system and with WDP to lease a warehouse from.

Auchan partners with Uber Eats…

Auchan has signed an agreement with Uber Eats, connecting its Auchan Cotroceni store to the platform. The retailer hopes to offer the service to all stores in Bucharest, although it did not give a timeline for doing so.

Uber Eats customers will be able to order special menus, created by Auchan, through the app. The menus are also available to customers at lamasa.auchan.ro, which uses the Auchan Click & Collect system. Orders can be collected from stores within 30 minutes. This allows Auchan to tailor its services to customers’ needs, offering personal delivery or collection. There are 25 dishes in the range, which includes traditional Romanian and international cuisine.

Commenting on the partnership, client and innovation manager Tiberiu Danetiu said, “This project… is proof of our dedication to our customers and a concrete way of fulfilling our vision of Auchan Changing Lives”.

…As it launches a biometric payment system

Meanwhile, the retailer is working with Oney Bank to launch a new mobile app, Well.com. The app enables payment with biometric (fingerprint) authentication or by scanning a QR code from a smartphone. Biometric authentication is secure and fast and eliminates the need for a card or smartphone.

The app is currently available to customers in Auchan Militari and Auchan Drumul Taberei stores. It will be extended to Auchan Cotroceni's customers soon. It is compatible with Android and iOS users using any Mastercard, VISA debit or credit card. It can be downloaded from the App Store or the Google Play Store.

…And rents a new warehouse from WDP

Separately, warehouse provider WDP will develop and lease Auchan a 77,000 sq m logistics warehouse. The warehouse, located in Bucharest, will be leased to Auchan for seven years. WDP will develop a new storage facility, with a temperature-controlled area, within the warehouse. The developments are expected to be completed during Q1 2020 and are estimated to cost €45m.

For subscribers wanting more on Auchan, its strategy and outlook to 2023, please see our insight presentation on the retailer.

We look at how French retailers Intermarché and Auchan are executing their new promotional offers.

Intermarché celebrates 50^th anniversary…

Intermarché has announced it will celebrate its 50^th anniversary in 2019. To mark the occasion, it is offering a range of prizes to be won every week. The competitions will run for 50 weeks and are outlined in 50 flyers that will be distributed during the period.

Intermarché’s main competition ran from 31 December 2018 to 5 January 2019 and offered customers the chance to win €50,000. Any customer who purchased the retailer’s ‘Kings La Campanière’ celebratory cake during this time was given a game coupon. The coupon immediately informed them whether they had won or not.

…With nationwide prize draws

A dedicated mobile app called Intermarché 50 ans has been created for the celebratory period. The app allows customers to participate in the weekly draws to win a variety of prizes. Possible prizes include a night stay in a castle for two, personalised jewellery, online cooking classes and movie rentals. By scanning their receipts using the app, customers can see whether they have won any prizes.

The final competition, funded by 40 partner brands, will run for five weeks in October. Customers must use the dedicated app to complete their ‘grid’, replacing lotto numbers with logos. The winners will be announced at the end of the month on national TV.

Auchan reimburses 100 products

Elsewhere, Auchan is offering a full refund on 100 non-food products worth over €2,000, reports trade publication Lineaires. From 9 January 2019, the retailer will supply a limited stock of the selected products to its hypermarkets. Customers will receive refunds in the form of four vouchers, which can be spent between 14 January and 10 February 2019.

Source: Auchan