Auchan to remodel all stores to Simply Market by end 2009
French retailer Auchan has announced it will remodel all of its supermarkets to Simply Market by the end of 2009. The move will see Atac in France, Sma in Italy, Elea in Poland and Sabeco in Spain convert to the banner, a discount supermarket concept which has been piloted since 2005. In Russia, the 20 Atak supermarkets currently in operation will retain their name and the retailer will double the number of stores by the end of the year. The remodelling will cost a total of EUR280 million (USD376.3million) of which EUR100 million (USD134.4 million) is reserved for France where 100 stores, out of a total of 286, have already been converted to Simply Market. Denis Simon, Managing Director of Auchan supermarkets said: “Between now and 2015, we hope to be operating 500 Simply Market" outlets in France. In general prices are around 10% less than those in an Atac. Furthermore, those stores that are already under the Simply Market banner open until 11pm and have see their turnover grow by around 13% per year, while Atac sales are shrinking by about 1%. Ten more Simply Market outlets will open in France this year and a further 20 in 2010 thanks to the new property law which allows stores of less than 1,000 square metres to open without authorisation. According to Auchan, this banner, which has an average sales area of between 800 and 3,000 square metres, responds to the new shopping needs of consumers, who wish to do their shopping in a 'convivial', 'comfortable' shopping environment with low prices.
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