Auchan To Start Franchising Supermarkets In France

Gilles Martin, CFDT group trade union delegate at Auchan, told French news agency AFP that ‘a major project to develop franchising at Auchan’ was announced at the group’s last Social and Economic Committee (CSE).

He revealed that ‘initially’ seven supermarkets will be sold, adding that ‘potentially half of the supermarket stock in France could be franchised.’

When contacted by AFP, Auchan’s management confirmed this list of stores for which the group is ‘looking for buyers’ and specified that ‘discussions are well advanced for some of them.’

The same source also confirmed the group’s intention to develop the franchise format “for supermarkets”, without specifying any figures on the number of stores potentially concerned.

In a press release, unions expressed their ‘concern’ about ‘the pronounced development of franchising through store disposals’, citing ‘the social consequences, both individual and collective.’

The move would represent a major change in Auchan’s strategy as the group was historically the owner of all of its stores.

According to Auchan’s website, it operates 119 hypermarkets, 235 supermarkets and 10 convenience stores in France, employing 65,000 people.

ESM