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Auchan Group to invest 90 million euros in Portugal



The Auchan group, which owns Jumbo hypermarkets, Pao de Acucar supermarkets and MyAuchan stores, has prepared investments in Portugal for 90 million euros over the next two years, of which more than half will be directed to refurbishments. The remaining 40% will be spent opening new sales outlets, in a strategy where the goal is to have different formats in the locations where Auchan already has customers.

"This year we have already spent 2,7 million euros on the remodeling of the store in Matosinhos. In March we made the Olhao store, where we spent more than 1 million euros", says Pedro Cid, director general of Auchan, adding that the next hypermarkets to remodel are located in Faro, Figueira da Foz and Alfragide. The emblematic Jumbo of Cascais, with which the French group marked the entry into Portugal 46 years ago, is expected to enter works in 2019, which will last about three years. As for the criteria followed in choosing the stores to modernize, Pedro Cid explains that older ones do not necessarily have priority.

"They have to do with the stores that most need and can adapt to the needs of certain areas of influence, such as if they have, for example, a larger area of fresh produce and that of organic products and smaller or have the area of textile. This has a lot to do with the customer profile in each store, with what we did in the beginning and what we have to adapt to the present", explains Pedro Cid. Regarding the impact on the sales business in these smaller stores, format that started this year, Auchan’s manager explains that he still has no expression and that has more to do with accompanying the customer in another purchase path. E-commerce is another bet. "At the moment we have a site with about 45 thousand to 48 thousand references, which can make all purchases, food and non-food. We are working on an application that allows the quick purchase and testing in the store in Evora the deliveries in an hour, with 3000 references, because it is humanly impossible to deliver 45 thousand references in an hour. Taking the route and buying 65-70 items in a store takes an hour and a half", he argues.

Migration to a single brand to be used in all store formats (Jumbo or Auchan) is expected to be decided during 2018, but Pedro Cid is not concerned or takes into account this change in stores that will be remodeled before that decision be taken. "What’s inside hypermarkets is the brand platform we’ve built over the years. The Jumbo brand has 70% or 80% inside the Auchan brand. We have to adapt to one thing or another, but roughly what exists is Auchan brand", explains the director general, adding that what is being prepared allows to change only the denomination affixed abroad hypermarkets. Regarding the weight of the compan’s own brands, Auchan’s manager revealed that they represent 30% of sales, a percentage that is growing in all areas. (expresso.sapo.pt)







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