Auchan’s Comeback Plan
French retail giant Auchan has a new plan to revitalize its business in France. This plan is all about three main goals: improving customer experience, offering better prices, and creating new store models. Each store type, whether hypermarket or supermarket, will get a fresh approach to help boost sales and attract more customers.
Auchan’s goal is to become the top store choice in every community by making key changes that reflect what customers want today. As a part of this plan, Auchan has shared new ideas with its partners, including updates for team members and changes to store operations.
Why Auchan Needs a New Plan
Since 2012, Auchan has seen fewer customers and lower profits in France. Its market share fell from 12.1% to 8%, and revenue decreased by €2.26 billion. Facing tough competition, Auchan is now taking action to bounce back. This article will explore how Auchan plans to do just that, focusing on three main areas of change.
Improving Customer Experience
New Shopping Projects
Auchan’s new plan is all about bringing better shopping experiences to customers. The focus will be on both food and non-food products. Auchan will strengthen its in-store dining options and offer a wide variety of private-label products that customers love. For non-food items, they’ll focus on daily essentials, with special items available during key seasons.
Key Changes in Food and Non-Food Sections
- Food Section: Focus on in-store dining and private-label products.
- Non-Food Section: Offer more everyday essentials with seasonal highlights.
Auchan wants customers to enjoy a personalized shopping experience, with products that match their needs.
Making Prices More Attractive
Price Partnerships
Auchan knows that competitive prices attract more shoppers. Partnering with Intermarché, Auchan will benefit from better buying conditions, which should help keep prices low. However, just a partnership won’t be enough to meet their pricing goals. Auchan plans to cut costs across the business to provide affordable prices for its customers.
| Goals | Details |
|---|---|
| Improve Purchasing | Partnership with Intermarché for better pricing |
| Cost-Cutting | Streamline operations to keep prices competitive |
Inventing New Store Models
Changing Hypermarkets and Supermarkets
Auchan’s stores need a new direction, especially the large hypermarkets. They’ll be changing the size and layout of some hypermarkets to better fit local community needs. Smaller stores will see improvements too, with changes to attract more franchise partners.
Auchan wants to make each store feel like a neighborhood hub, providing essential services and products that make life easier.
A New Role for Hypermarkets
Hypermarkets will play a new role, acting as main hubs for the brand. Each hypermarket will support smaller stores in the area by preparing orders, offering fresh products, and handling local deliveries. The new model is currently being tested in Bordeaux to see how it works before expanding.
Social Impact: Responsible Choices for the Future
Changes in Staff Roles
To make these changes, Auchan has to rethink some staff roles. New jobs will be created in support functions, while others will be removed. Some job roles in hypermarkets, such as sales managers, will be eliminated as the company reorganizes around a more customer-focused approach.
Store Closures and Employee Support
Auchan has decided to close three hypermarkets, one supermarket, and six convenience stores. While 466 jobs are affected by these closures, Auchan is committed to supporting each impacted employee through retraining, redeployment, and financial support.
| Actions | Impact |
|---|---|
| Staff Role Changes | 915 positions affected by reorganization |
| Store Closures | 3 hypermarkets, 1 supermarket, 6 stores |
| Employee Support | Retraining, job assistance, financial aid |
A Modern Auchan: Looking to the Future
Auchan’s new strategy aims to create a modern retail experience that meets the needs of today’s customers. By updating store models, improving customer service, and focusing on affordable pricing, Auchan hopes to regain its position as a leader in the French retail market. The company believes hypermarkets are still an important part of the shopping experience and is committed to making them better than ever.
Summary Table: Auchan’s Growth Plan
| Strategy | Key Actions |
|---|---|
| Customer Experience | Focus on private labels, improve in-store dining |
| Pricing | Partnership with Intermarché, cost-cutting |
| Store Model | Resize hypermarkets, attract franchise partners |
| Hypermarket Role | Act as hubs for local orders and deliveries |
| Employee Impact | New roles in support, staff reorganization |
| Closures | 3 hypermarkets, 1 supermarket, 6 convenience stores |
Conclusion
Auchan’s plan for growth in France aims to bring customers the best shopping experience with affordable prices, personalized services, and updated stores that meet local needs. This comeback strategy shows Auchan’s commitment to adapting in a competitive market, making it a store to watch in the future.
