Auchan will convert all its poorly performing hypermarkets into discount hypermarkets and group them under a dedicated subsidiary called Somarvrac, the blogmulliez reported. The retailer, which has been highly innovative in developing new concepts over the past few years will create a new discount hypermarket concept inspired by the self-discount zones currently found in its large stores.
Last summer, the retailer announced it would open two discount hypermarkets in Russia under the Radouga (Rainbow) banner and the first new discount hypermarket concept will be opening in France this winter in Mulhouse-Boutzwiller (Alsace region), replacing an Auchan hypermarket which has been producing losses over the past five years. The 9,000 square metre store will be 100% self-service and most items will be stocked using shelf-ready packaging. As a result, the store will need less staff. Manufacturers will also place their stock directly on the aisles.
The retailer plans to adopt this strategy to convert underperforming stores globally. Auchan has asked each of its subsidiaries in the countries where it is present to take one store, which hasn't been performing as well as the others, and create a discount concept for it. These stores will form part of a subsidiary called Somarvrac and will be piloted by Marc du Colombier, who was formerly Head of Auchan Poland and Russia, who will be responsible for converting these stores into discount hypermarkets.
