Forget the huge Auchan stores with hundreds of thousands of references and a wide choice of products. It’s ancient history. The group wants to transform itself. After the announcement of the elimination of 2,389 positions and the closure of ten businesses, he wishes to put in place a strategy to continue reducing costs, explains The Parisian mardi.
Smaller and fewer references
First step: reduce the size of its stores. They will all have to measure around 8,000 m2 within three years. 65 points of sale, considered too large, will therefore lose 25% of their surface area.
Second step: review your priorities. Auchan intends to rely more on its private labels so that they represent half of the turnover in the future. The offer in the large appliances and DIY sections will be reduced. Fewer references will be presented. The “major seasonal” operations, textiles and the home universe will be developed.
Falling prices
Third step: attract customers with price cuts and align with competitors. “The ideal would be to be less expensive than Carrefour, and at a reasonable distance from Leclerc,” Auchan told our colleagues.
Prime Minister Michel Barnier is attentive to all these announcements and wishes to question Auchan but also Michelin about their social plans. He says he wants to “know” what the two groups did “with the public money that was given to them. I want to know it. And so we are going to ask questions and we will see if this money was used well or poorly to learn lessons,” he said on Tuesday.
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