Auchan hypermarket chain is leaving Russia — what is the reason

The owners of the Auchan supermarket chain have decided to sell their branch in Russia, as they can no longer withstand European sanctions. The chain remains one of the few French retailers still operating in Russia.

This was reported by La Lettre.

Why Auchan is leaving the Russian market

It is noted that Auchan has found a local buyer to exit Russia and is currently in the final stages of negotiations. The owners of the chain, the Muller family, have decided to stay in Ukraine while planning to leave Hungary. The company has already selected two potential buyers from the local market in Russia.

Over the past two years, Auchan has received about 10 "unsolicited offers" to sell its 230-store Russian network. However, the owners stubbornly refused to leave Russia, claiming that they wanted to continue supplying basic necessities to ordinary citizens. According to journalists, the real reason for this decision was that Russia remained one of the largest strategic markets for the Muller family.

Recently, however, it has become impossible for Auchan to continue operating in Russia due to compliance with 18 sets of sanctions imposed by the European Union on Moscow.

"Unlike other, less vigilant European retailers, Auchan is following the sanctions imposed on Russia to the letter. It does not invest or raise a single penny. This puts it at a great disadvantage compared to local retailers owned by Russian oligarchs, who can do nothing with their money but invest it in their company," an Auchan insider explained.

It should be noted that Auchan is one of the largest French companies represented in Russia. In 2022, the chain had 231 stores and its financial turnover reached 3.2 billion euros.

What else you should know

As a reminder, German clothing brand Hugo Boss recently sold a share of its business in Russia to a local wholesale partner, Stockmann. Both parties have not yet disclosed the amount of the deal.

We also wrote that The Coca-Cola Company, which left the Russian market after the outbreak of the Great War, filed three applications for trademark registration in Russia. Some analysts saw this as a sign of the company's intention to resume operations in Russia.