Spanish retail giant Auchan to shutter 25 supermarkets, impacting over 700 employees.
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Hello there! Here's the lowdown on Auchan Spain's recent moves. On May 8, they announced a major shake-up, closing 25 supermarkets and shedding over 700 jobs as part of a restructuring plan. This plan is a response to changing consumer habits, with shoppers preferring smaller, more convenient stores, according to Auchan - who operates in Spain as Alcampo.
Known as the "transformation essential to recover results," this plan aims to keep Auchan performing well in each of its stores [3]. Despite their challenges, they're still holding onto their desire to grow and create value in the Spanish market.
The affected employees, roughly 710 of them, come from a group of 224 supermarkets that Auchan acquired back in 2023. Some of these supermarkets didn't fit Auchan's business model, or their locations were less than optimal [3].
While this may seem like tough news, the CCOO union, which represents the workforce, aims to address the situation with a focus on preserving jobs. They want to ensure that any employee departures happen under the best possible conditions [3].
Auchan, a part of the Mulliez group, has been facing rough economic waters for a while. In fact, by the end of 2024, the group announced another major restructuring, featuring site closures threatening 2,400 jobs in France [3].
In case you're curious, the decline in sales for Auchan Spain during their financial year 2024 was around 1%, resulting in roughly €5 billion in revenue. This happened even with network expansion efforts [3]. Auchan Spain also reduced investments significantly, from €357 million the previous year to €117 million in 2024 [1][3].
Overall, it's clear that Auchan Spain's restructuring reflects the need to streamline its supermarket network and workforce in response to sales challenges and economic factors in the Spanish retail sector [1][3].
Want more details? Check out our subscribers-only article, Auchan's massive social plan marks the end of its historic model on our website, in partnership with AFP.
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The restructuring plan announced by Auchan Spain in 2023 involves the closure of 25 supermarkets, resulting in over 700 job losses, as part of an effort to streamline its supermarket network in response to changing consumer habits. Despite this challenging move, Auchan continues to aim for growth and value creation within the Spanish market. However, the retail industry as a whole faces financial hurdles, as evidenced by Auchan's parent company, the Mulliez group, announcing another restructuring in France, threatening 2,400 jobs by the end of 2024. Furthermore, the Spanish supermarket chain experienced a decline in sales during its financial year 2024, resulting in a significant reduction of investments from €357 million the previous year to €117 million in 2024. This scenario signifies the need for adaptation and financial responsibility across the retail sector. The CCOO union, representing the workforce, remains focused on addressing the situation to ensure the best possible conditions for any employee departures.
