Auchan Russia changes its target and gives it to the Premium
Increases quality and range to face the decline in market share
The Russian press reports the statements of the Auchan Retail Russia General Director, François Remy, to the online newspaper "Vedomosti". The French GDO that in Russia since 2002 has created a network that today has over 300 stores of different sizes, from the hypermarket to the small one, has decided to change the business model of the products sold.
The network, mainly based on discounters with a focus on less expensive products, will be directed towards goods of the highest quality. "The challenge now is to offer customers a more complete range entirely dedicated to the medium and premium segment, and without disappointing customers accustomed to discount prices, the goal is to offer superior quality products at cheaper prices than the competition". From this point of view, the number and type of goods proposed will increase by 30-40%. The equation according to Remy is simple: increasing the range of products raising the quality level will increase the business that has been reduced in the last year. In fact, according to Infoline, referred to as "Vedomosti", in 2017 the market share of Auchan in Russia decreased from 2.9 to 2.2%, a decrease confirmed without further details by the General Manager himself.
And while in Russia the GDO takes steps to revive its business, on the Italian front the crisis is more marked. It is news of these hours that it does not reverse the decision to close the hypermarkets of Napoli Argine and Catania La Rena, after the failure of the comparison table between the company management and Filcams Cgil, Fisascat Cisl and Uiltucs. These trade unions now call for the urgent intervention of the Ministry of Economic Development with a call to Rome in the last attempt to save 246 jobs, and with the aim of "deepening Auchan's business plan and strategies and organizational repercussions as well as defining solutions that allow the full occupational protection of workers affected by these processes. "For the national secretary of Fisascat Cisl Mirco Ceotto" the management of Auchan al Mise will have to clarify the real commercial strategies of the multinational in Italy, where it is also present with the channel supermarkets ".
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