Auchan to enter St. Petersburg

Auchan has started negotiations on construction of its first hypermarket in St. Petersburg, RBC Daily informs. If the city’s authorities agree to provide French retailer with an appropriate land lot the first Auchan store in St. Petersburg might appear in the city as early as in 2006.

It is well known that hypermarkets are much better represented in St.Petersburg than in Moscow and other Russian cities. This fact can’t but influence Auchan’s entrance. On the one hand it will be easier to start, while on the other hand Auchan will face tough competition on behalf of the local Lenta and O’Key retail chains, analysts comment. Remember Metro Cash&Carry, which has yet failed to achieve its planned profitability in St.Petersburg. Besides, purchasing capacity of the city’s customers is twice less than that of Moscovites which means much lower level of impulse purchasing. So in order to succeed Auchan will have to adjust its policy to the local requirements.

Experts also agree that entrance of Auchan and other ‘external’ retailers will not damage the local retailers, whose positions in the city are very strong. Still it might force them to correct their strategy to co-exist with the newcomers.

Auchan has started negotiations on construction of its first hypermarket in St. Petersburg, RBC Daily informs. If the city’s authorities agree to provide French retailer with an appropriate land lot the first Auchan store in St. Petersburg might appear in the city as early as in 2006.

It is well known that hypermarkets are much better represented in St.Petersburg than in Moscow and other Russian cities. This fact can’t but influence Auchan’s entrance. On the one hand it will be easier to start, while on the other hand Auchan will face tough competition on behalf of the local Lenta and O’Key retail chains, analysts comment. Remember Metro Cash&Carry, which has yet failed to achieve its planned profitability in St.Petersburg. Besides, purchasing capacity of the city’s customers is twice less than that of Moscovites which means much lower level of impulse purchasing. So in order to succeed Auchan will have to adjust its policy to the local requirements.

Experts also agree that entrance of Auchan and other ‘external’ retailers will not damage the local retailers, whose positions in the city are very strong. Still it might force them to correct their strategy to co-exist with the newcomers.