Retail giant Auchan has announced that it will standardise its presence in Portugal, eliminating the Jumbo and Pão de Açúcar store banners.
"The Auchan brand is a global brand that fits with what we have been doing, a brand that is younger, more adapted to our profile and what we want to build," the general manager of Auchan Retail Portugal, Pedro Cid, told journalists at a press conference.
The change is to be effected in 2019 and is part of a two-year investment plan of €90 million.
Of this total, €40 million is destined for the opening of new stores.
According to Cid, the plan is to roll-out 25 to 30 new myAuchan proximity stores (500 to 600 square metres), located in areas of the country where there are already other Auchan stores. These include Porto, Coimbra, Figueira da Foz, Aveiro, Algarve, Setúbal and Algarve.
myAuchan Neighbourhood Stores
The myAuchan neighbourhood stores focus on refrigerated, organic, and diet products, divided into three large areas: fresh, snacks and high consumption products. The stores also incorporate a strong digital element, with customers able to pay for purchases on their mobile phone or pick up purchases made online.
Cid also said that Auchan will continue investing in Portuguese products for its stores.
Another €40 to €50 million will be used for the adaptation of the Auchan brand to the new era, while €4 to €5 million will be invested in rebranding. The retailer also plans to increase investments in its online and digital channels.
Auchan Retail Portugal operates 33 large and medium sized stores in Portugal, nine myAuchan stores and 27 petrol stations.
Arrival Of Mercadona
The changes to Auchan Retail Portugal's operations coincide with the arrival of Mercadona to the country, with the Spanish retail giant set to open stores in Vila Nova da Gaia, Matosinhos, Maia and Gondomar next year.
Cid and his team has rejected suggestions that the restructuring is in any way linked to the arrival of such an illustrious rival, Jornal de Negócios reported.
"It's a great company, very simple format, very Spanish," he told the paper.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
