FRANCE: Auchan’s format development in France | Progresiv
The first Hyper U to be rebranded as Auchan has opened in Gap, south-eastern France. This marks the start of the store swaps revealed when Auchan and Système U entered into a partnership to combine their buying power in September 2014. This store, which has been extended from 5,220 sq. m to 7,000 sq. m, carries the new Auchan.fr logo which the retailer is implementing to highlight its multichannel focus. It also includes new features of a parapharmacy, traditional fish counter, gourmet sushi, beer cellar and organic ranges. 
Auchan has opened Simply Market Gourmand in the Parly 2 shopping centre, Paris. Its strong fresh food offer includes regional products, traditional cheeses, an extensive fruit and vegetable section and bakery. At present, it appears unlikely that Auchan will roll out this format, perhaps because it is outside its core low price image.
Format development is one of Auchan's strengths, with discount, fresh food and convenience concepts all tested. Further innovations are expected as the group searches for new growth avenues and tries to serve a broader shopper base.
Auchan's large stores have been struggling in 2015, with a fall in hypermarket sales in the first half. It expects the alliance with Système U to have a positive effect, opening new opportunities such as these store rebrandings. We will see more developments in the coming years, as hypermarkets' CEO Philippe Baroukh has said investments will be rebalanced in favour of France. (www.igd.com)
