These planned hypermarkets are smaller and carry a lower range of products, many of which are private label and lower priced.
“We expect Auchan will strengthen its leading position on the Russian hypermarket segment. As it did with the Auchan City concept, Auchan might introduce Nasha Raduga stores to other markets in Central and Eastern Europe, such as Romania,” said research company IGD Retail Analysis.
Auchan, which tested this concept in Russia ever since 2009 and currently has five such stores in towns with populations of 300,000 to 500,000 inhabitants, announced the opening of compact hypermarkets in four small towns with around 100,000 inhabitants.
At the beginning of June, Auchan Romania chief Frederic Bellon said Auchan’s investments in the next three years will focus on the two projects underway in Bucharest and Brasov, which amount to EUR70 million just for the hypermarkets.
In April, Auchan finished its EUR40 million remodeling of the 20 Real hypermarkets it bought from German group Metro. Auchan currently has 31 stores in 18 cities and two more under construction in Bucharest and Brasov.
Auchan Romania had a turnover of RON4.6 billion last year, excluding taxes, more than double compared to 2012, following the integration of Real hypermarkets. Auchan and Real posted a cumulative loss of EUR15 million last year.