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Retail

Auchan To Start Franchising Supermarkets In France

By Branislav Pekic
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Auchan To Start Franchising Supermarkets In France

Retailer Auchan is planning to sell seven of its stores in France to franchisees, adding that it plans to increasingly rely on this store operating model in the future.

Gilles Martin, CFDT group trade union delegate at Auchan, told French news agency AFP that 'a major project to develop franchising at Auchan' was announced at the group's last Social and Economic Committee (CSE).

He revealed that 'initially' seven supermarkets will be sold, adding that ‘potentially half of the supermarket stock in France could be franchised.’

Trade magazine LSA revealed that the stores in question are located in Montdidier (Somme), Ferrières-en-Bray (Seine-Maritime), Saverne (Bas-Rhin), Aurillac (Cantal), L'Haÿ-les-Roses (Val-de-Marne), Rambouillet and Les Mureaux in the Yvelines.

‘Looking For Buyers’

When contacted by AFP, Auchan’s management confirmed this list of stores for which the group is ‘looking for buyers' and specified that 'discussions are well advanced for some of them.'

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The same source also confirmed the group's intention to develop the franchise format "for supermarkets", without specifying any figures on the number of stores potentially concerned.

In a press release, unions expressed their 'concern' about 'the pronounced development of franchising through store disposals', citing 'the social consequences, both individual and collective.'

The move would represent a major change in Auchan’s strategy as the group was historically the owner of all of its stores.

According to Auchan’s website, it operates 119 hypermarkets, 235 supermarkets and 10 convenience stores in France, employing 65,000 people.

© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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