Reorganization and reduction of sales areas
Already in July, Auchan had announced a profound reorganization, aimed at reducing the size of its hypermarkets. The strategic plan foresees a reduction of 300,000 m² of sales area by 2027, including 50,000 m² from this year. This reduction will primarily concern stores of more than 10,000 m², with a target size objective of around 8 000 m² for the entire park.
Towards the elimination of thousands of positions
Guillaume Darrasse, general manager of Auchan Retail, is considering between 2,100 and 2,300 job cuts in France, distributed equally between the store jobs and the support functions, according to Letter A. At the same time, Auchan is planning a repositioning on prices thanks to a partnership with Intermarché and an overhaul of its product offering. The group also wishes to accelerate the development of its franchised stores, with a doubling of franchised points of sale planned by the end of 2024.
Unions warn of risks to employment
For several months, unions have feared a significant reduction in workforce in France, where Auchan employs approximately 59,000 people. The difficult economic situation and increased competition in the mass distribution sector are putting the company in difficulty, recalling the situation of Casino Group. The transformation strategy carried by Guillaume Darrasse (under the project name ADN) also includes revisions in IT and Data functionsincreasing concerns around future organizational changes.
A financial situation under pressure
The Auchan group, owned by the Mulliez family via the holding company HOW MUCHrecorded a loss of almost a billion euros in the first half of 2024. Down by 4.7% in Franceits turnover suffers from a strong price competition and a context of deconsumption which affects hypermarkets more severely.
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