Dániel Jellinek spoke about Auchan’s new strategy

The deal grants Indotek a 47% stake in Auchan Hungary, along with full operational control from December 1. “We nominate three out of four board members, and we have a majority in the supervisory board as well,” Jellinek explained. Despite the operational shift, the French Auchan Group retains its ownership stake, and the brand name will remain unchanged for 20–25 years. Additionally, the French parent company will continue providing international procurement, IT services, and know-how.

Why Would Auchan Allow Operational Control to Shift?

The French parent company, Mulliez Group, has similar joint ventures in the Middle East and Asia, where local partners manage operations while the French retain ownership. Jellinek noted that Auchan’s performance in Hungary has been below expectations. “This is a volume-driven business, and their market share in Hungary was not sufficient. While the company was profitable, it was only marginally so,” he added.

Challenges and Opportunities for Auchan in Hungary

According to Jellinek, Auchan needs to adapt to the highly competitive Hungarian retail market dominated by discounters like Lidl, Penny, and Aldi. The group plans to optimize inventory and improve efficiency using advanced technology like artificial intelligence. “For example, if customers buying Kozel beer tend to have higher basket values, that’s worth focusing on,” he said. Future plans include expanding Auchan’s footprint across Hungary with smaller satellite stores connected to hypermarkets, partly through a franchise system, and enhancing online sales capabilities.

Addressing Government Policies and Sectoral Challenges

Jellinek dismissed the notion that his decision was influenced by government pressure for greater Hungarian ownership in the retail sector. Instead, he highlighted synergies with Indotek’s real estate portfolio, as it is the largest commercial property owner in Hungary. “The main motivation was finding a good deal and leveraging our local knowledge and expertise,” he emphasized.

A Focus on Long-Term Growth, Not Quick Profits

Jellinek assured that Auchan’s new ownership model is focused on long-term growth rather than short-term profits. He ruled out the possibility of selling to politically connected circles, stating, “I don’t plan to sell the business, nor do I intend to bring in new partners.”

Navigating Legal Issues with Transparency

Amidst the business expansion, Jellinek faces legal challenges. The Győr-Moson-Sopron County Prosecutor’s Office has filed charges against him in connection with a VAT fraud case, for which Jellinek took full responsibility. He explained, “When it became clear that a supplier’s invoices were non-transparent, we removed them from our accounts, conducted a self-revision, and paid all due taxes.” As a result, he is set to pay a 250 million HUF (€625,000) fine as part of a settlement with prosecutors.

Jellinek emphasized the importance of accountability: “If someone makes a mistake, they must take responsibility for it, no matter how difficult it is.” He also noted that his company has since tightened its internal processes to prevent such incidents in the future.

Insights on Selling to the Hungarian Government

Reflecting on his previous dealings, including selling the iconic Gellért Hotel to István Tiborcz, Jellinek noted that these transactions are business-driven. “I sold the Gellért because Tiborcz had a completely different concept that suited the property better than ours,” he explained. Jellinek dismissed claims of a prearranged strategy to sell to politically connected individuals, emphasizing his focus on profitability and strategic growth. Regarding government purchases like the Budapest Airport, he remarked, “It’s a very important strategic investment for the state and an excellent business decision.”

Indotek’s International Expansion

While the Auchan acquisition temporarily shifts Jellinek’s focus back to Hungary, his ultimate goal remains international growth. Currently, 30% of Indotek’s assets are abroad, and he plans to increase this figure to 70%. Active in 12 countries, Indotek is particularly focused on Poland, Spain, and Italy, investing in hotels, retail, logistics, and distressed asset portfolios.

Jellinek’s approach to business combines a sharp eye for strategic opportunities with a commitment to operational excellence. Whether optimizing Auchan’s operations or expanding Indotek’s international portfolio, he remains a key player in shaping the Hungarian and regional business landscape. His emphasis on innovation, accountability, and long-term planning underscores his vision for sustainable success in a competitive market.