As part of its ongoing restructuring, French chain Auchan now wants to sell nineteen supermarkets, totalling 33,760 sqm of retail space, to Lidl.
Recovery plan
Forced by a decrease in its revenue and an increase in its losses, Auchan announced a recovery plan in February that was supposed to get the chain back on track. It now appears that Lidl wants to take over nineteen supermarkets and has initiated exclusive talks, LSA reports.
Auchan confirmed to the French trade magazine that it had “reviewed the profitability and investment needs” of all stores, and that it had also considered formulas such as franchising, but that selling ultimately proved to be the best option “to safeguard employment.” Remarkably, nine of the stores were among the number of stores that Auchan only acquired from Casino last year.
Lidl enters the deal looking to improve its national coverage, particularly in southern France, where fifteen of the nineteen stores are located – the exceptions being two locations near Lille and two in the Paris region. The deal could be fully completed this year, if the French competition authority gives its approval quickly.
Two months ago, the chain already closed 25 supermarkets in Spain as part of that recovery plan. Those were all relatively recently acquired as well: until 2022, they were still Dia supermarkets.
