Reduced surface area, drastic reduction in household appliances, expanded drive-thru: what will change in Auchan stores

The distributor Auchan presented a draft social plan to its staff representatives this Tuesday threatening 2,389 jobs in Franceto try to get back on track after several difficult years. The distributor is in worse shape than its competitors: over the first six months of 2024 alone, its holding company Elo Groupe announced a net loss of almost a billion euros in July.

In detail, Auchan, which currently employs 54,000 people in Franceplans in particular to eliminate 784 positions within its headquarters and 915 in hypermarkets which remain open. With this upcoming social plan, the brand wants to rethink its organization to offer a new store model. What will change at Auchan near you? Here's what you need to remember.

Reduction of hypermarket surfaces

Auchan is historically strong in the hypermarket format, the largest stores, which are less popular today. The northern group therefore wants to reduce the surface area of ​​these hypermarkets by a quarter. This concerns around sixty stores. While the surface area of ​​some of them reaches between 15,000 and 20,000 m², the group now wishes to cap them between 8,000 and 10,000 m². Auchan hopes to rent the spaces that will be left vacant to other brands.

Drastic reduction in multimedia and household appliances

Certain non-food sections will also almost disappear, with multimedia and household appliances in the lead, undermined by online commerce. This will particularly concern Auchan stores located near specialized stores. On the other hand, products may appear in stores during one-off promotional operations. Customers will always be able to find a hardware or DIY section with emergency products such as light bulbs or screwdrivers.

Revamped direct delivery, new formula for drive

The Auchan group is also planning the closure of three warehouses which ensured order preparation and direct home delivery, in Paris, Lille and Lyon. This measure should lead to 224 job cuts. The company wants these deliveries to now be made by hypermarkets. They will become a sort of preparation laboratory from which orders and homemade products will go, whether for small sales areas or for individuals. The drive, that is to say the collection of online purchases, will be expanded. The creation of 114 positions is planned by Auchan.

Towards cheaper prices?

Auchan also wants to reduce the prices of its products. For the moment, its negotiating power with suppliers is limited, because its market share, at 9.1% at the last count, makes it only the 5th player in the French market. To remedy this pitfall and lower prices, it joined forces with Intermarché and Casino to buy jointly, for an unusually long period of 10 years.

More franchise stores?

The group, which owns all of its stores, has very few franchises. He therefore wishes to develop them like Carrefour. These independent companies, which do not belong to the group, but which have the right to use the Auchan brand, reduce operating costs as much as possible. This generally allows these stores to be able to sell their products at more competitive prices, but the social conditions there are generally lower. This greatly worries unions who fear for compensation and benefits.