2024-11-05 14:54:00
Auchan wants to close around ten stores in France. An action that would threaten 2,389 jobs. In detail, Auchan, which employs around 54,000 people in France, plans to cut 784 positions within its headquarters and 915 positions in stores.
It provides for the cessation of the direct home delivery activity which would result in 224 job cuts as well as the closure of around ten unprofitable points of sale (466 positions eliminated), including three hypermarkets in Clermont-Ferrand Nord (Puy -de-Dôme), Woippy (Moselle) and Bar-le-Duc (Meuse), as well as a supermarket in Aurillac (Cantal).
Towards job cuts in Luxembourg?
In the Grand Duchy, 1,300 employees currently work for all Auchan Luxembourg activities. Should we also expect a wave of layoffs? Requested by CommaAuchan Luxembourg emphasizes that the announcements “concern France and in no way Luxembourg”.
The French group has been present in the Grand Duchy since 1996, including three hypermarkets and seven Auchan Drive collection points. Note also that 16 MyAuchan convenience stores are present in the Grand Ducal territory, including a local supermarket which is located Esch-sur-Alzette. Unlike France, Auchan Luxembourg already indicated to our colleagues in Wort not to want reduce its sales areas.
Limit the number of redundancies
Auchan management in France hopes to limit the number of redundancies through support for the employees concerned, retraining, reclassification leave and voluntary departure plans. It also provides for the creation of 114 positions in “drive” activities and 205 within support functions.
At Auchan, your orders are now prepared by robots
Net loss of one billion euros
Auchan Retail had already announced in September 2020 the elimination of 1,475 positions in France, after a voluntary departure plan of more than 500 positions in January of the same year.
Long considered one of the best-performing players at the social level within mass distribution, Auchan has had a series of bad economic years and its holding company Elo Groupe announced in July a net loss of almost a billion euros on the first six months of 2024.
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**Interview with Jean Dupont, Economic Analyst**
**Interviewer:** Good afternoon, Jean. Thank you for joining us today to discuss Auchan’s recent announcement regarding job cuts and store closures in France. Can you give us a brief overview of the situation?
**Jean Dupont:** Good afternoon! Yes, Auchan has announced plans to eliminate 2,389 jobs as part of a strategic restructuring. This includes cutting positions at their headquarters and closing around ten unprofitable stores, particularly affecting locations in Clermont-Ferrand, Woippy, Bar-le-Duc, and Aurillac.
**Interviewer:** What do you think are the main reasons behind Auchan’s decision to close these stores?
**Jean Dupont:** There are several factors at play here. The retail sector has faced significant challenges over the past few years, including increased competition from online retailers, changing consumer behaviors, and rising operational costs. Auchan has identified specific stores that are not performing well financially, and closing them is a way to stabilize their overall business.
**Interviewer:** How is this likely to affect the employees involved, and what support might they receive?
**Jean Dupont:** The announcement is certainly distressing for the affected employees. Auchan will likely offer some form of severance packages, and they may provide support for those seeking new employment, such as job placement services or retraining programs. However, the extent of this support will depend on the company’s policies and available resources.
**Interviewer:** There’s also been concern about potential layoffs in Luxembourg. What’s the current stance of Auchan regarding their operations there?
**Jean Dupont:** Auchan Luxembourg has clarified that the cuts announced pertain specifically to France and do not impact their Luxembourg operations. They currently employ about 1,300 staff in the Grand Duchy and have indicated they are not planning any store closures or job reductions at this time.
**Interviewer:** Given these developments, what should we expect from Auchan in the near future?
**Jean Dupont:** I believe Auchan will focus on restructuring its operations to enhance profitability while navigating the changing retail landscape. We may also see an increased emphasis on online shopping and home delivery services, as these areas have gained traction during the pandemic. Staying agile and innovative will be crucial for their success moving forward.
**Interviewer:** Thank you, Jean, for your insights on this important topic. We appreciate your time!
**Jean Dupont:** Thank you for having me. It’s always a pleasure to discuss these significant developments in the retail industry.
