Auchan announces steps to complete transition

Auchan France has laid out its plans to implement the key initiatives established in the 2022 transformation plan. According to Auchan Retail France’s chief executive, Jean-Denis Deweine, the retailer is […]
Wed 16/09/2020

Auchan France has laid out its plans to implement the key initiatives established in the 2022 transformation plan. According to Auchan Retail France’s chief executive, Jean-Denis Deweine, the retailer is to focus on five strategic priorities:

  • Improve the offer: with more focus on local and exclusive or artisanal products and private labels

  • Update its hypermarkets

  • Develop digital proximity through the opening of further Drives and pedestrian Drives

  • Evolve the supply chain

  • Transform business models to adapt to new tools, ways of working and jobs

Deweine highlighted the need for the hypermarket format to evolve to meet changing needs, and to play a central role in a multichannel strategy. The format could support other stores, with space used to prepare fresh products for Auchan’s supermarkets or used as fulfilment centres for home deliveries. Further space could be reallocated to third party brands, as has been happening recently.

In a bid to reduce reliance on its hypermarkets, Deweine said Auchan is working to lower the share of sales accounted for by the format to 50% by 2025, down from 75% today. This requires an accelerated pace of development and increased growth at its supermarkets and digital channels.

In H1 2020, 12% of Auchan France’s sales were accounted for by Drives or home delivery. Auchan plans to increase this share to 15% by 2022. More Drives will be opened in key urban areas, while Drives will be added to more hypermarkets and supermarkets too.