Drafted 29 October, updated 5 November 2024
The French supermarket chain would not be able to keep its business afloat after the sanctions and restrictions imposed by the West.
Auchan is currently in the final stages of negotiations to sell its Russian subsidiary to a local buyer, after more than 20 years of operations in the country. This decision comes amid growing international pressure and accusations of supporting the invasion of Ukraine.
According to French media reports, Auchan has received ten expressions of interest but has narrowed down the options to two potential buyers. The sale is expected to materialise in the coming weeks, but the retailer still needs approval from the local authorities.
If the sale goes through, the French giant, which currently employs around 30,000 people and operates 230 shops in the country, will face an exit tax of up to 35%.
Auchan’s sales in Russia and Ukraine fell by 4.2 per cent last year, contributing to an overall reduction in turnover of 2 per cent. Excluding these markets, growth would have been 4% (true, but there would be inflation to calculate).
We have talked about Auchan in Russia at length.
On the general situation of Auchan read :
Auchan : €1 billion loss in the first half of 2024 with 2,700 planned redundancies.
Auchan-Decathlon: on strike, employees of the two brands stand side by side
