Auchan leaves Italy and Vietnam

Since becoming President of Auchan’s distribution activities in October 2018, Edgard Bonte has made severe cuts to put his company back on the road to profitability. After the sale of 21 sites in France without a “realistic prospect of a return to profitability”, Auchan Retail has decided to leave Italy and Vietnam.

On Tuesday, May 14, the company announced the sale of almost all of its subsidiary Auchan Retail Italia to the transalpine cooperative group Conad, for an undisclosed amount. In Italy, Auchan, which posted sales of € 3.6 billion in 2018, is in charge of nearly 1,600 stores (hypermarkets, supermarkets, ultra-proximity stores and digital businesses), under the Auchan and Simply brands. in own and in the franchise. It employs 14,000 full-time equivalent employees. Auchan will keep 33 supermarkets located in Sicily and 50 drugstores Lillapois (perfumery, hygiene, beauty), the time to seek a buyer.

Auchan Retail will also leave before the summer Vietnam, a country where it was the last Western distributor since the departure of Casino in 2016. The announcement was made Tuesday morning, the teams concerned. “We launched it four years ago and we have not found the economic model adapted to the Vietnamese market,” says one internally. Auchan has achieved 45 million euros of turnover in Vietnam in 2018.

Source: lemonde.fr