French chain Auchan is closing supermarkets in Russia. In the first six months the number of the retailer's supermarkets has decreased by 32.5%, RBC reports citing the company's report.

Thus, during this period Auchan closed 17 stores. Thus, on June 30 this year the network consisted of 238 stores, including 95 hypermarkets and 143 supermarkets. A year ago the figures were distributed differently: at that time there were 62 hypermarkets and 212 supermarkets, i.e. the number of supermarkets had decreased by 32.5%.

Over the past five years, Russian Auchan has been reducing its revenue under RAS (Russian Accounting Standards) and last year it fell by 12%, according to media reports. In addition, last year, for the first time in five years, the company recorded a net loss of 4.8 billion rubles. The retailer attributed such results to the sanctions and changes in preferences of Russians in their choice of stores.

As Johannes Tolay, former General Manager of Auchan's domestic division, explained to the publication, the convenience store format is now actively developing, which provoked a reduction in the share of supermarkets and hypermarkets.

Made in Russia // Made in Russia

Author: Ksenia Gustova