Auchan investing in its hypermarkets globally | Progresiv
France-based trade publication Lineaires has reported on an updated Auchan hypermarket in Shanghai. Auchan has digitised the store’s offer and the way it provides services, incorporating inspiration from the Alibaba-operated chain Hema, amongst others. 
One element added to the store’s offer is home delivery within one hour of shoppers ordering products. Through its own app Auchan is enabling shoppers to buy from a range of 5,000 (mostly fresh) SKUs, with prices the same as those offered in-store. Picking is done from the hypermarket, with orders transported with a basket conveyor above shoppers’ heads, like that seen in Hema, which has already been incorporated at a separate RT Mart hypermarket. Following the addition of a similar offer at the RT Mart hypermarket, Auchan expects to fulfil about 1,000 orders daily, underlining the efficiency of the fulfilment system.
For subscribers wanting to see in-store at Alibaba’s Hema Fresh supermarket, see our insight presentation.
As other formats gain share and retailers expand rapidly in the country, Auchan’s previous growth market of Russia has come under pressure. Following disappointing results in the country in 2017, Auchan Russia’s executive chairman, François Remy, has said it will look to ‘offer shoppers a more complete offer, especially in the… intermediate and premium [price] segments’. The new range will be trialled in three stores, which have also been updated to enhance their look and feel and to complement the changes to their offer.
To do this, Auchan is set to expand its range by between 30% and 40%. Remy and Auchan believe that expanding the range, adding new, more premium products will lead to further sales. Despite the products being more premium than others in its range, Auchan is committed to maintaining its price-focused positioning. According to Remy, this means that ‘even if it is a premium commodity, it must be less expensive for us [than competitors’ ranges]’.
The move to a more premium range is being aided by the addition of further SKUs under its private label brand. Initially this has seen it grow its range of premium chocolate products. The expansion of its premium private label range is a departure for Auchan, which has traditionally used its own products to offer items at prices at between 20% and 30% lower than comparable brands.
As part of its renovation of its hypermarket in Moratalaz (Madrid), Auchan has added a dine-in area, under the El Bistro brand name. The Bistro sells a mix of local and international options, gourmet snacks and beverages, with options provided for different day parts. The 300 sq. m area also provides shoppers with free wi-fi access and recharging points for smartphones. (www.igd.com)
