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2023 was a tough year for Auchan, with sales and profits falling. Nevertheless, the French retail group sees room for improvement this year, thanks to the acquisition of Casino stores and the alliance with Intermarché.
“Paradoxical” year
Group sales fell 2 % to 32.26 billion euros last year, but on a like-for-like basis sales rose 2.5 %. That number, however, does not include Russia and Ukraine, where the distributor still operates. Gross operating profit actually plummeted 14.7 % to 1.14 billion euros.
The fall in profits is almost entirely attributable to the French home market, while the group said it did perform well in Hungary, Poland and Spain. The management therefore called 2023 a “paradoxical year”, but said it has now laid the foundations for recovery.
Huge acquisition
The group is investing a billion euros to reduce one-third of its 400 hypermarkets by a quarter over the next five years. The freed-up space will be used for other commercial activities. The group has also acquired more than 800 shops in a year and a half, including 98 Casino branches.
Auchan is very proud of that acquisition, with which it aims to take its market share in France to 10 % while strengthening its position in the mediated coastal areas. Auchan is also strongly committed to franchising, both for convenience stores as for supermarkets and both in France as in other countries. Management also attaches great importance to the purchasing alliance it is about to conclude with Intermarché: the future long-term cooperation (for at least ten years) will allow Auchan to increase the share of private label products from 30 to 50 %.
