Auchan to invest €195m in Russia

Auchan to invest €195m in Russia

AuchanAuchan announced that it would invest around €195m in Russia during 2016 to enhance its presence in the country. The major chunk of the money will be spent to create and maintain a distribution network for the company in Russia. Using the investment the company would create 10 Auchan City stores and 40 different Atak outlets. A new meat processing unit in Tambov and a warehouse in Moscow region is also in plans.

During 2015 Auchan invested around €138m in Russia as a part of its plans to widening into Eastern Europe. The company announced its plan to start a new distribution center in Poland.  It has also made changes regarding the discounts and loyalty programs for shoppers.  Auchan revealed its plans to return to the classic jackpot of 5% on its private label food every day. The retail chain terminates an original and mechanical loyalty program which was variously appreciated. In recent years Auchan has tested numerous changes in its loyalty program. Until 2012, customers of the brand were recovering 5% in voucher on their purchases of private label. In 2013, this loyalty program has been replaced by an offer rise to 10%, but only on “rotary” rays.

Faced with negative reactions from customers, the retailer quickly, the same year again increased the lead to 25%, this time limiting it to “an Auchan product list every day.” In 2014, another mechanism has emerged: 5% in cagnottage on poultry slaughter and bakery items each day. This means one would get a differentiating and compelling offer if the selected products are expensive (butchery, bakery), much less on a simple baguette.

 

You must be logged in to post a comment Login