Auchan Retail is seeking to 'conquer urban centres' across France through increased investment in both proximity and digital services, as part of the second phase of its transformation plan.
The second phase of the Auchan 2022 plan, which was announced last year, will also see the retailer seek to 'reorganise' its hypermarket estate, merchandising structure and after-sales service; a process that will see the loss of around 1,475 jobs.
At the same time, the business anticipates the creation of 377 jobs in a number of new roles, and up to 600 additional posts following the 'activation of a major strategic development axis around digital proximity'.
'The Right Direction'
Commenting on the strategy, Jean-Denis Deweine, managing director of Auchan Retail France, said that while to date, Auchan 2022 has delivered "encouraging" results, this has been set against the challenges of COVID-19.
"Nevertheless, we are moving in the right direction – a direction confirmed by the lessons of the health crisis. As we adapt our operations and operational organisation, and set out to conquer urban centres through proximity and digital, this should allow us to meet the expectations of our customers and find the path to sustainable and profitable growth."
Levers To Growth
Auchan's strategy is built around three levers, the first of which involves establishing unified management of its supply chain, from supplier to customer, and follows on from the creation of Auchan Retail Logistics lsat year.
Secondly, the retailer is seeking to accelerate the digitalisation of its offer, through enabling customers to do their shopping (and pay for it) through any number of channels, further enhancement of its click and collect offer, and digitalisation of the after-sales service offered by its brands.
Thirdly, it is seeking to pool its support activities in hypermarkets; namely administrative services such as human resources. As part of this, it will also seek to integrate more food preparation, such as butchery, in store, to both increase staff knowledge and create a closer link to the customer.
Elsewhere, the strategy also seeks to bolster locally-sourced production of quality, healthy foods, and develop experiences to improve the 'quality of life' of its customers.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
