FRANCE: Auchan reports “resilient” first half | Progresiv
Auchan has reported a 3.4% increase in consolidated revenue, to 26.9 billion euros, for the first half of 2015 (+2.0% at constant exchange rates). The French business remains a concern however, with revenue down 2.9% in the home market. Auchan reported a fall of 3.2% in hypermarkets' and 2.7% in supermarkets' revenues. Auchan expects the alliance with Système U to have a positive effect, opening up new opportunities for both parties. Their objective is, together, to become a major player in the French market. The alliance has been referred to the competition authorities, a move which could ultimately lead to store disposals or changes in retail members' affiliation, which other franchise groups are likely to be keeping a close eye on 
Speaking to the press, hypermarkets' CEO Philippe Baroukh said Auchan is to rebalance its investment within three years, giving a greater share to France. It has invested 132 million euros in the market in H1, 19% of its investment to date.
despite an overall fall in revenue of 4.4%, Auchan said it returned to growth in Spain and showed improvement in Portugal. The decline in Italy was anticipated, resulting from changes to Auchan's business model as it seeks to better address consumers' expectations. Revenue was down 6.4% in Central and Eastern Europe, in euro terms, but up 10.6% in local currency. Auchan said the devaluation of the rouble had a significant impact. The CEE region is becoming ever more important to Auchan; it invested 302 million euros in the first half against 171 million euros in the first half of 2014. Auchan reported revenue up 28.6% (+7.0% at constant rates) for the half. It continues to expand e-commerce, having acquired online food retail specialist Fields in China. (www.retailanalysis.igd.com)
