retail
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and th ...
group headquartered in Croix, France. It was founded in 1961 by Gérard Mulliez and is owned by the Mulliez family, who has 95% stake in the company.
With 354,851 employees, of which 261,000 have 5% stake in the company, it is the 35th largest employer in the world.
The name comes from the first Auchan shop in
Roubaix
Roubaix ( or ; nl, Robaais; vls, Roboais) is a city in northern France, located in the Lille metropolitan area on the Belgian border. It is a historically mono-industrial commune in the Nord department, which grew rapidly in the 19th centur ...
in the district of Hauts-Champs, the pronunciation of which is identical to that of "Auchan".
The holding company, Auchan Holding, includes Auchan Retail International, Ceetrus, which operates shopping centers and Oney, which offers
financial services
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companie ...
. It operates as Alcampo in Spain ("al campo" is the literal Spanish translation of the French "au champ"), Auchan in Portugal, Aшан (''Ashan'') in Russia and Ukraine, and through a joint-venture as RT-Mart in China (Auchan brand is also used) and Taiwan.
As of 2022, Auchan is one of the world's largest retailers with a direct presence in France, Spain, Portugal, Luxembourg, Poland, Romania, Hungary, Ukraine, Russia, Taiwan and Senegal.
Auchan is notable for being a rare example of a Western company continuing to operate in Russia after Moscow sent thousands of troops into Ukraine.
History
1961-1969: The beginnings
After meeting the founders of the
Carrefour
Carrefour () is a French multinational retail and wholesaling corporation headquartered in Massy, France. The eighth-largest retailer in the world by revenue, it operates a chain of hypermarkets, groceries stores and convenience stores, wh ...
and Leclerc, on July 6, 1961, Gérard Mulliez opens the first Auchan store in a disused factory of the company Phildar, founded by his father, also named Gérard. Covering an area of 600 m2, this store was located in the district of Hauts-Champs, in
Roubaix
Roubaix ( or ; nl, Robaais; vls, Roboais) is a city in northern France, located in the Lille metropolitan area on the Belgian border. It is a historically mono-industrial commune in the Nord department, which grew rapidly in the 19th centur ...
. Originally, the store was to be called "Ochan", but because of the Japanese sounding, changed the name to "Auchan". The choice of the initial letter "A" was desired by the founders to appear in first place in directories. Gérard Mulliez relied on the advice of Édouard Leclerc to open his first supermarket. This store had to be closed in the 1980s because of strong competition with the one that had been built in Leers. The building was bought by the
Intermarché
Intermarché (English translation: Intermarket) is the brand of a general commercial French supermarket, part of the large retail group Les Mousquetaires founded in 1969 under the name EX Offices, by Jean-Pierre Le Roch. EX Offices was renamed ...
. In 2003 it was demolished to make space for a more modern store.
In the summer of 1967, on 20 August, Auchan opens its first hypermarket in Roncq in an initially commercial area of 3500 m2.. According to Gérard Mulliez, Roncq location served as a model for other hypermarkets in France in non-food enlargement. On March 27, 1969 was opened the Englos-les-Géants shopping center at
Englos
Englos (; nl, Engelo) is a commune in the Nord department in northern France.
It is located near the city of Lille. In 2004, the population of Englos was 614.
Geography
Englos is located west of Lille and about 10 km from the Belgian-Fre ...
in the Lille metropolis. Englos les Giants was the first shopping mall with a hypermarket and a retail park in France.
Mulliez family
Auchan SA is controlled by the
Mulliez family
The Association Familiale Mulliez (AFM) is the holding company of the Mulliez family. The entrepreneur family originates from around the Lille area of France, and is one of the wealthiest families in the country. AFM was founded in 1955 by Gé ...
, one of the wealthiest in France and in Europe. The Mulliez family also owns
Leroy Merlin
Leroy Merlin () is a French-headquartered home improvement and gardening retailer serving several countries in Europe, Asia, South America, and Africa. Leroy Merlin is owned by the Mulliez family, which also owns Auchan.
History
In 1923, Ad ...
,
Decathlon
The decathlon is a combined event in athletics consisting of ten track and field events. The word "decathlon" was formed, in analogy to the word "pentathlon", from Greek δέκα (''déka'', meaning "ten") and ἄθλος (''áthlos'', or ἄθ ...
and other retailers.
Auchan operations
China
Auchan opened its first store in
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flowin ...
in 1999. It operates through Sun Art Retail Group, a public company listed in Hong Kong, in which Auchan holds 38,5% stake and Alibaba Group 26%.
Suzhou
Suzhou (; ; Suzhounese: ''sou¹ tseu¹'' , Mandarin: ), alternately romanized as Soochow, is a major city in southern Jiangsu province, East China. Suzhou is the largest city in Jiangsu, and a major economic center and focal point of trad ...
Jinji Lake store that is located in
Suzhou Industrial Park
The China–Singapore Suzhou Industrial Park (), or Suzhou Industrial Park for short, abbreviated as SIP, is a county-level administrative area located in Suzhou, Jiangsu, China. The industrial park was established in February 1994, as part of t ...
had nine million visitors during that
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ju ...
with over four hundred million turnover and became one of the biggest Auchan hypermarkets in the world. Suzhou store expanded in 2008 and is the biggest Auchan Hypermarket in China, the second biggest in the world. Also, Auchan China led to open its online shopping website for the stores in Shanghai and Suzhou.
Auchan offers online shopping only in those two cities so far and is opening in Suzhou its first AuchanDrive store, based on its French model (click & go) in May 2012. The AuchanDrive service allows customers to purchase groceries online for home delivery, these locations being examples of
online supermarkets in China Online supermarkets in China are shopping websites that offer grocery buyers a complete shopping solution from a single online platform. The emphasis on these sites is to provide consumers all the products they would normally find on a supermarket ...
.
Since 2017, a number of unmanned convenience stores, marketed as BingoBox, are being operated by Auchan in China.
In 2020, Auchan leaves China, after selling its shares to
Alibaba
Ali Baba is a character from the folk tale ''Ali Baba and the Forty Thieves''.
Ali Baba or Alibaba may also refer to:
Films
* ''Ali Baba and the Forty Thieves'' (1902 film), a French film directed by Ferdinand Zecca
* ''Ali Baba'' (1940 film ...
.
Russia
Auchan (branded as Aшан) has been active on the Russian market since 2002 and had over 100 hypermarkets in the country by December 2016. It's the company's third largest market, after France and China. Revenues for the country reached $5 billion in 2014, ranking third behind the local retailers
X5 Retail Group
X5 Group (previously known as X5 Retail Group and commonly known as X5) is Russia's largest food retailer.
The company operates several retail formats: convenience stores under the Pyaterochka brand, supermarkets under the Perekrestok brand ...
and Magnit. In 2016 it was ranked first in a list of the largest foreign-owned companies by the Russian edition of Forbes.
In November 2021, Russian “Auchan” signed with online-delivery service "Sbermarket" a deal of strategic partnership in e-commerce until 2028. First, from 2022, both partners will be focused on delivery from darkstores as well as delivery and loyalty programs for B2B clients. In January 2022, Russian Auchan switched on 73 stores (more than a half of its stores, including "Atak") to Sbermarket delivery.
One of few companies still operating in Russia after the country invaded and went to war against Ukraine. Despite EU and US sanctions Auchan have continued their operations in Russia.
Auchan Holding
Auchan Holding is composed by Auchan Retail, Ceetrus and Oney. It also consists of: Ceetrus (former Immochan), the division which operates shopping centers and hypermarket galleries and Oney (former Bank Accord), the financial services group that offers
consumer credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt ...
s and Auchan and Leroy Merlin
credit cards
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...
.
Slogan
The slogan of the company was ''La Vie, La Vraie'', which translates into English as "Life, the real one". The slogan was changed in 2007 to: ''La vie Auchan, elle change la vie'' – "Auchan's lifestyle changes life (itself).
Own-label product brands
*''Le Moins Cher'' (Translated: The least expensive) – Economy range similar to
Asda
Asda Stores Ltd. () (often styled as ASDA) is a British supermarket chain. It is headquartered in Leeds, England. The company was founded in 1949 when the Asquith family merged their retail business with the Associated Dairies company of Yorks ...
Smartprice,
Tesco
Tesco plc () is a British Multinational corporation, multinational groceries and general merchandise retailer headquartered in Welwyn Garden City, England. In 2011 it was the third-largest retailer in the world measured by gross revenues an ...
Everyday Value or
Sainsbury's
J Sainsbury plc, trading as Sainsbury's, is the second largest chain of supermarkets in the United Kingdom, with a 14.6% share of UK supermarket sales.
Founded in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company w ...
Basics in the UK. In Portugal, it's called "Polegar" (Translated: Thumb (Up)).
*''Les Produits Auchan'' (Translated: Auchan Products) – Own brand of products
*''Rik et Rok –'' Products designed for children (this is also a "club" for children)
*''Les Produits Régionaux'' (Translated: The regional products)- Regional products such as Breton biscuits
*''Mmm!'' – Gourmet Auchan products.
*''Mieux Vivre Bio/Sans Gluten'' (Translated: Live Better Organic/Without Gluten) – Auchan products that are either organic or without gluten.
*''Baby'' – Auchan products designed for babies.
*''Sabores de Portugal (Translated: Flavours of Portugal)'' – Exclusive brand for regional Portuguese products, available only in Portugal.
*''Каждый День'' (''Kazhdyi Den, translated: ''Every day'') – Local economy brand in Russia, positioned as having the lowest (even compared to other Auchan brands) price while meeting all quality standards. Same applies for Ukraine, while it is named ''Кожен День (Kozhen Den', Every Day)''
*''Наша Семья'' (''Nasha sem'ja, translated: ''Our Family'') – Local middle-class brand in Russia.
*''Selecline'' – Electrical appliances and electronics sold by Auchan.
*''Qilive'' – Electrical appliances, electronics and some computer accessories sold by Auchan
*''Inexive'' – Electrical appliances and electronics sold by Auchan
*''Cup's'' – Fitness and sports equipment
*''Cosmia'' – Cosmetics and beauty products
*''Actuel'' – Premium kitchen utensils, home decor and appliances
*''Airport'' – Suitcases and travel equipment
*''gardenstar'' – Gardening tools and other equipment
Withdrawn ventures
Auchan opened a number of stores in Mexico; the first of these opened in
Mexico City
Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley of ...
in 1996 and eventually grew to five stores.The first store located in Tlatelolco, was sold to Comercial Mexicana in 1998. Faced with stiff competition from
Wal-Mart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarte ...
Carrefour
Carrefour () is a French multinational retail and wholesaling corporation headquartered in Massy, France. The eighth-largest retailer in the world by revenue, it operates a chain of hypermarkets, groceries stores and convenience stores, wh ...
(who also sold their stores and left the country in March 2005), Auchan decided to sell their stores to Comercial Mexicana and withdrew from Mexico in early 2003, the 3 stores located in Tlatelolco, Gran Sur and Arboledas, were sold to Soriana in 2016.
In 2002 Auchan sold its hypermarkets in Thailand to
Groupe Casino
Casino Group or Casino Guichard-Perrachon is a French mass-market retail group. It was founded on 2 August 1898 by Geoffroy Guichard under the corporate name Guichard-Perrachon & Co.
Casino Group is the source of many innovations such as the f ...
.
In 2007 Auchan sold its Argentine stores to
Wal-Mart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarte ...
and withdrew from the country.
Following a conflict with its Moroccan partner ONA, Auchan sold its 49% share in August 2007.
In January 2011 Auchan dropped out of the Dubai market after just two years.
The first Italian Auchan hypermarket was opened in Turin on 1989. In 2019 Auchan withdrew from Italy due to financial losses, by selling most of the activities of its Auchan Retail Italia to the Italian retailer Conad.
Also withdrew from Vietnam due to losses and slow development.
Houston Business Journal
American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes The Business Journals, which contains local business news for 44 markets in the United States, Hemmings Motor New ...
''. Sunday 8 June 2003. Modified on Thursday 5 June 2003. Retrieved on 13 January 2011. who was the successor of interest to Texfield Inc. By the time of its closing it was the only French hypermarket chain to still operate American stores, as other hypermarket chains, such as
Carrefour
Carrefour () is a French multinational retail and wholesaling corporation headquartered in Massy, France. The eighth-largest retailer in the world by revenue, it operates a chain of hypermarkets, groceries stores and convenience stores, wh ...
and E.Leclerc (under the guise of Leedmark) gave up in the United States market around
1993–1994.
The first American Auchan (pronounced by Houstonians as “o-shawn”) store opened in western
Houston
Houston (; ) is the List of cities in Texas by population, most populous city in Texas, the Southern United States#Major cities, most populous city in the Southern United States, the List of United States cities by population, fourth-most pop ...
Houston Business Journal
American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes The Business Journals, which contains local business news for 44 markets in the United States, Hemmings Motor New ...
''. Monday 6 January 2003. Retrieved on 13 January 2011. The hypermarket was located on a plot of land on
Beltway 8
Beltway 8 (BW8), the Sam Houston Parkway, along with the Sam Houston Tollway, is an beltway around the city of Houston, Texas, United States, lying entirely within Harris County.
Beltway 8, a state highway maintained by the Texas ...
, north of
U.S. Route 59
U.S. Route 59 (US 59) is a north–south United States highway (though it was signed east–west in parts of Texas). A latecomer to the U.S. numbered route system, US 59 is now a border-to-border route, part of the NAFTA Corridor Highway Sy ...
/
Interstate 69
Interstate 69 (I-69) is an Interstate Highway in the United States currently consisting of 10 unconnected segments with an original continuous segment from Indianapolis, Indiana, northeast to the Canadian border in Port Huron, Michigan, a ...
. The store was one of many hypermarkets to open in the U.S in the late 80's,
after
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
debuted
Hypermart USA
Hypermart USA was a demonstrator project operated by Walmart in the 1980s and 1990s, which attempted to combine groceries and general merchandise under one roof at a substantial discount. The hypermart concept was modeled after earlier efforts ...
in December 1987, and
Carrefour
Carrefour () is a French multinational retail and wholesaling corporation headquartered in Massy, France. The eighth-largest retailer in the world by revenue, it operates a chain of hypermarkets, groceries stores and convenience stores, wh ...
's
Philadelphia
Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Sinc ...
store debuted in March 1988. David Kaplan of the ''
Houston Chronicle
The ''Houston Chronicle'' is the largest daily newspaper in Houston, Texas, United States. , it is the third-largest newspaper by Sunday circulation in the United States, behind only ''The New York Times'' and the ''Los Angeles Times''. With i ...
'' said "it was fairly unusual and became something of a tourist attraction" when it had first opened, as it was big enough to house many small businesses in front, such as a travel agency, a jewelry store, a bank, and a food court containing a
Taco Bell
Taco Bell is an American-based chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, incl ...
,
McDonald's
McDonald's Corporation is an American multinational fast food
Fast food is a type of mass-produced food designed for commercial resale, with a strong priority placed on speed of service. It is a commercial term, limited to food sold ...
, and
Pizza Hut
Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and dessert at d ...
. It also featured a huge cheese selection, a huge beer and wine selection, featuring local breweries such as Celis White, and a bakery, and like most hypermarkets operating in the U.S. in the late 1980s, as well as
Aldi
Aldi (stylised as ALDI) is the common company brand name of two German multinational family-owned discount supermarket chains operating over 10,000 stores in 20 countries. The chain was founded by brothers Karl and Theo Albrecht in 1946, whe ...
, Auchan also made customers use quarters to use the shopping carts, and in order to appeal to Houstonians, it had a huge seafood selection, as well as rodeo wear.Kaplan, David. Auchan closing local stores to exit U.S. market " ''
Houston Chronicle
The ''Houston Chronicle'' is the largest daily newspaper in Houston, Texas, United States. , it is the third-largest newspaper by Sunday circulation in the United States, behind only ''The New York Times'' and the ''Los Angeles Times''. With i ...
''. 7 January 2003. Retrieved on 13 November 2012.
Auchan also opened a store in the Chicago suburb of
Bridgeview, Illinois
Bridgeview is a village in Cook County, Illinois, United States. It is located approximately southwest of the Chicago Loop. As of the 2020 census, the village population was 17,027.
History
The earliest settlement in Bridgeview occurred in the ...
, in 1989. It only sold food, and it was not as large as the Houston store. In 1991 the store closed. It was later bought by a local Chicago supermarket chain, Dominick's, and converted into an Omni Superstore by 1991.
Auchan's second
Greater Houston
Greater Houston, designated by the United States Office of Management and Budget as Houston–The Woodlands–Sugar Land, is the fifth-most populous metropolitan statistical area in the United States, encompassing nine counties along the Gulf Co ...
location opened in southeast Houston in September 2000, in a former
Target
Target may refer to:
Physical items
* Shooting target, used in marksmanship training and various shooting sports
** Bullseye (target), the goal one for which one aims in many of these sports
** Aiming point, in field artillery, fi ...
store, which Auchan heavily renovated (and partially built up on) prior to opening, the most obvious example being the entrances, designed to make it look huge, despite its past as a Target. Kaplan said, "Auchan had solid business its first years, but with only two stores in the country, the company lacked buying power and economy-of-scale advantages." In early January 2003 Auchan announced that both of its U.S. stores were making losses and were going to be closed; Auchan stated that it was instead going to concentrate its expansion in Asia and Europe, and on January 6, 2003, Auchan closed the two money-losing stores, ending all American operations after 15 years. Auchan USA sold its first Houston location to Ho Enterprises.
Lewis Food Town
Lewis Food Town, Inc., doing business as Food Town Grocery Stores, is a chain of grocery stores located in Greater Houston, founded in 1994. The headquarters are in South Houston. Kaplan said that by 2003, "the Houston market is saturated with huge discounters and large grocery stores." In addition, many similar stores, including an H-E-B Food and Drug Store, the Hong Kong Supermarket, a
Sam's Club
Sam's West, Inc. (doing business as Sam's Club) is an American chain of membership-only retail warehouse clubs owned and operated by Walmart Inc., founded in 1983 and named after Walmart founder Sam Walton as Sam’s Wholesale Club. , Sam's C ...
, and a
Wal-Mart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarte ...
had opened in proximity to the west Houston Auchan. In Europe, zoning laws would prevent such a high concentration of similar stores. Kaplan further added that "In Europe, shopping malls are not as prevalent as they are in America, and Auchan's everything-under-one-roof concept has greater appeal" in Europe rather than in the United States. The second former Auchan is now used by a local scaffolding company, and was used as a shelter for Hurricane Katrina victims in 2005 and Hurricane Ike victims in 2008 due to its large space.
Cheapest shop
According to study by ASM Sales Force Agency, Auchan was cheapest shop in
Poland
Poland, officially the Republic of Poland, , is a country in Central Europe. Poland is divided into Voivodeships of Poland, sixteen voivodeships and is the fifth most populous member state of the European Union (EU), with over 38 mill ...
, in class of shops that study checks.
Criticism
Building collapse at Savar
On 24 April 2013, the eight-story ''Rana Plaza'' commercial building collapsed in
Savar
Savar ( bn, সাভার) is a city in central Bangladesh, located in Dhaka District in the division of Dhaka. It is the closest city from Dhaka. It is also a part of Greater Dhaka conurbation which forms the Dhaka megacity. About 296,851 ...
Dhaka
Dhaka ( or ; bn, ঢাকা, Ḍhākā, ), formerly known as Dacca, is the capital and largest city of Bangladesh, as well as the world's largest Bengali-speaking city. It is the eighth largest and sixth most densely populated city ...
, the capital of
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the List of countries and dependencies by population, eighth-most populous country in the world, with a population exceeding 165 million pe ...
. At least 1,127 people died and over 2,438 were injured. The factory housed a number of separate garment factories employing around 5,000 people, several shops, and a bank and manufactured apparel for brands including the
Benetton Group
Benetton Group S.r.l. () is a global fashion brand based in Ponzano Veneto, Italy, founded in 1965. Benetton Group has a network of about 5,000 stores worldwide. It is a wholly owned subsidiary of the Benetton family's holding company Edizi ...
,
Joe Fresh
Joe Fresh is a Canadian fashion brand and retail chain created by designer Joe Mimran for Canadian food distributor Loblaw Companies Limited. It was formed in 2006. The label includes adult and children's wear, shoes, handbags, jewelry, beauty p ...
,
The Children's Place
The Children's Place Inc. is a specialty retailer of children’s apparel and accessories headquartered in New Jersey. It also markets apparel under the Children's Place, Place, Baby Place, and Gymboree brand names.
As of October 31, 2015, it ...
, Primark,
Monsoon
A monsoon () is traditionally a seasonal reversing wind accompanied by corresponding changes in precipitation but is now used to describe seasonal changes in atmospheric circulation and precipitation associated with annual latitudinal osci ...
, and DressBarn. Of the 29 brands identified as having sourced products from the Rana Plaza factories, only 9 attended meetings held in November 2013 to agree a proposal on compensation to the victims. Several companies refused to sign including Walmart, Carrefour, Mango, Auchan and Kik. The agreement was signed by Primark, Loblaw, Bonmarché and El Corte Ingles.
2022 Russian invasion of Ukraine
Following the 2022 Russian invasion of Ukraine which began on February 24, many international, particularly Western companies pulled out of Russia. Auchan, with nearly 300 stores and 41,000 employees in Russia, has been criticized for not announcing any scaling down of its operations, unlike most of its Western competitors.
See also
*
List of companies of France
A ''list'' is any set of items in a row. List or lists may also refer to:
People
* List (surname)
Organizations
* List College, an undergraduate division of the Jewish Theological Seminary of America
* SC Germania List, German rugby uni ...
*
List of hypermarkets
This is a list of hypermarket chains sorted alphabetically by continent and country. A hypermarket is a superstore carrying a wide range of products under one roof, and theoretically allows customers to satisfy all their shopping needs in one t ...