Auchan Holding announced in a statement Friday a net loss of 1.145 billion euros in 2018. The overall turnover is down 3.2% to 50.99 billion euros. Edgard Bonte, Executive Chairman and Chief Executive Officer of Auchan Holding appointed in October 2018, referred to a “very worrying situation”. Auchan Retail suffers, like other major players in the sector, the disenchantment of customers for the model of the hypermarket but also the competition of online sales sites, Amazon in the first place.
Edgard Bonte has acknowledged “very inadequate” results and announces a recovery of the distribution division’s activity “which will go through arbitrations and renunciations”. This new plan should make it possible to “either reorganize the stores or reform them” thanks to a “control of the debt and financial ratios. If it is mainly Italy, Russia and France who are concerned about these difficulties, no dismissal is planned for the time being in France. The group expects to generate “several hundred savings in a full year” by halving investments and hopes for a recovery in the very short term “with significant improvements expected in 2019.”
Auchan Holding, owned by the Mulliez Family Association (AFM), operates in three business lines: banking with Oney, real estate with Ceetrus and distribution with Auchan Retail.