Auchan focusing on organic ranges in France

Date : 19 April 2021

Jon Wright

Head of Insight - RA EMEA

As Auchan looks to grow its share of sales from organic products in France, expands its omnichannel presence in Portugal and sets out its results in Spain in 2020, we round up news from the retailer.

Alcampo publishes results for Spain in 2020

Alcampo has said it generated a turnover of €4.497 bn in 2020, down from €4.652 bn in 2019. Comparable sales rose by 3.6% during the year, underlining the effect of store closures on its performance. During the year, the retailer continued to open and add new stores, while also evolving its offer. It enhanced its fresh offer, seeing it offer 6,000 SKUs in the department at the end of 2021, with 93.5% of the products purchased from Spanish suppliers.

It invested in its private labels, taking the number of SKUs under its own label to more than 4,000. Its Alcampo Producción Controlada label covered 183 SKUs developed in conjunction with mostly Spanish small and medium sized producers. Elsewhere, to take account of growing shopper interest in sustainable and better for you products, Alcampo ended the year with 1,835 gluten-free SKUs, 400 of which are lactose free, 2,800 organic products, and 45 Fairtrade items.

During the year it invested €39.3m, a 12.6% rise on 2019’s figure, of which 62% was spent on renovating and updating existing stores, with 7.5% invested in opening new stores. Of the remainder, money was evenly split between changing stores from its old brands to Alcampo and its digital transformation, with the remainder spent on sustainable initiatives.

The retailer said it opened five company-owned supermarkets and a further nine under franchise agreements. It closed 29 supermarkets, with 10 sold to Eroski, two closed by itself and 17 by franchisees. It ended the year with 310 stores, made up of 62 hypermarkets and 248 supermarkets, of which 113 were owned and 135 operated by franchisees, 53 petrol forecourts and operated online through www.alcampo.es. In relation to its online store, it launched a trial of ordering in one store and collecting it at another, while expanding the reach of its click and collection points.

Auchan to put greater focus on organic ranges in France in 2021

As part of an interview in local trade publication Lineaires, Auchan Retail’s manager for organic, health, self-discount, and bulk goods, José Da Silva Neves, discussed how the retailer was looking to boost sales of its organic ranges. He explained the retailer was aiming to expand its organic range by 20%, adding exclusive products across both branded and private label products to try to attract new shoppers. The expansion will see it add about 100 private label SKUs.

The new focus will see Auchan trial a new in-store space just for organic, which if successful will be rolled out nationwide. In bulk products, by May 2021 the retailer has said 100% of its hypermarkets will have organic products, while a similar range will be available in 80% of its supermarkets by the end of 2021. Neves said a Bio-focused store could be a possibility in the future but would follow investment in 2021, which will centre on its hypermarkets and supermarkets and its digital transformation, particularly on the expansion of its Pedestrian Drives.

Auchan growing omnichannel operations in Portugal

In separate developments, Auchan has grown its presence with its proximity focused MyAuchan banner and expanded its ecommerce fulfilment operations in Portugal. In February, the retailer opened its 30th MyAuchan in Lisbon. The 250 sq. m store continued its focus on growing its presence close to shoppers while providing access to organic, better-for-you, and local products.

Meanwhile, the retailer has added collection points for small and local producers at 25 stores. The ‘PickUp Local’ collection points will provide local producers and smaller traders with dedicated space in an Auchan store and help the companies save money by limiting delivery and logistics costs. To enable the service Auchan has partnered with more than 100 small producers who in a 50km radius of its stores.

Retail Analysis weekly newsletter

Keep up-to-date with the latest retail developments shaping the industry.

Sign up for our newsletter »