Drafted 20 July, updated 24 July 2025
We said it when talking about the unfair practices still in place in Italy: it is not only farmers who suffer, but also workers in the fields and suppliers of fresh produce as well as packaged goods.
Then there are the distributors with their workers, as in the case of Carrefour Italia (there are certain mandates for the sale of the Italian branch).
But it is the whole ‘French’ distribution that is in turmoil: Auchan is one of the many distributors in difficulty, for some time, on the European scene. We remember it in the Auchan- Conad affair. Nevertheless, or precisely because it is, it has decided to buy part of the French retailer Casino ‘s network(France: Auchan aims to acquire 95 Casino shops).
And this was despite Casino’s huge losses.
Then the make-up seems to have started working: Auchan Retail, sales down – only – 1.8% in 2024. Ceo Darrasse focuses on Mdd and surface reduction.
Auchan, like other groups – e.g. Vegè in Italy – that have made acquisitions, have been able to present themselves as companies that win customers(sales and market share should instead always be assessed on a like-for-like network basis).
In essence, Vegè and Auchan acquire customers by opening new outlets but also by buying companies while the discount chain Action only did so by opening new outlets.
But what is ‘worrying’ is not so much this figure as the fact that both Auchan and Casino are doing badly.
ELO is the Mulliez family’s group that incorporates real estate, retail(Auchan Retail) and a stake in a bank.
Auchan Retail ‘s figures are not good: sales are down, as is EBITDA (EBITDA).
The confema on the marginality, which is falling, comes from Le Monde : “Auchan’s EBITDA “fell to 2.8% in 2024, compared to 4.4% in 2023, 5.2% in 2022 and 6.6% in 2021”. S&P estimates that the brand lost EUR 300 million in France in 2024. In November 2024, Auchan presented a draft redundancy plan threatening 2,389 employees in France, out of a workforce of 54,000.
And this affects solvency: ‘Auchan and Casino are under pressure from creditors. In a context of falling consumer spending, credit institutions believe that the financial structure of the two leading French retailers needs to be strengthened. According to reports, French banks would like the Mulliez family to inject capital into Auchan.”
And ELO (Mulliez- Auchan) has seen its debt downgraded several times: its half-year results will be unveiled on 24 July and most likely the fate of Auchan will be better understood.
In the meantime, Auchan has resold part of the network it bought from Casino (and one wonders why it bought it other than for the make-up operation).
Casino, on the other hand, is trying to renegotiate its debt: €2 billion is due in March 2027.
It should be noted that one of the major shareholders of Le Monde is the owner of Casino: if the affair were to take place in Italy, a local newspaper would probably not give the news about the company involved.
Le Monde not only gives it but also says that Daniel Kretinsky, shareholder of Le Monde and Casino, will have to “put his own funds” back into the distribution company.
