Auchan: three years of development in sight

Though Auchan did not open any new stores last year, it is possible that they will open two this year. They spent 2007 preparing their workforce for the period of intensive development starting in 2008. – Demand for basic foods has increased, while non-food items like TV-s were harder to sell – says Katalin Gillemot, assistant to the CEO of Auchan Magyarország Kft. Although overall sales of non-food items declined during the year, Christmas sales partly compensated for this. Overall sales were up compared to 2006, and the number of customers also showed growth last year. Their business strategy remains unchanged, they intend to offer the widest assortment at the most favourable prices. They will also continue to hold promotions like the French days. Regarding communication, they rely on brochures of their own, TV spots and billboards. A garden department has been opened in eight of their ten stores. – Apart from basic food items, demand also increased for premium category products – says Katalin Gillemot. New products in our assortment include fresh Italian pasta and sliced meat products made from mangalica. The assortment of Hungarian wines and bio-products also continued to expand. They prefer to work with Hungarian suppliers if possible. Auchan Magyarország is celebrating its tenth birthday this year with many suppliers who have been partners from the beginning. Regarding merchandising programs, decisions are made by the specific stores independently, in order to adapt to their local environment as flexibly as possible. Trade marketing is not a priority, because they believe that consumers are interested in good quality at a good price. It is used basically when a new product is being introduced.