Auchan getting ready for Mercadona's arrival in Portugal

Retailers in Portugal are getting ready for the imminent arrival of Mercadona to the country in 2019. Auchan has been the latest to announce new measures, with plans to invest around 90 million Euro in Portugal in the next two years. The main goal is to modernise its stores and prepare for future challenges.

Auchan operates in Portugal with Jumbo hypermarkets, Päo de Acúcar supermarkets and My Auchan small stores, which allow them to be in the top 6 of the Portuguese food distributors, just like in Spain.

The announced investment will go toward the modernization of the stores, but also to the opening of new points of sale in order to cover as much of the country's territory as possible. The strategy is to have different formats in the locations where Auchan already has a significant clientele.

"In 2017, we have already spent 2.7 million Euro on the remodelling of the store in Matosinhos, and in March, we launched the Olhão store, in which we spent more than one million Euro," said Pedro Cid, CEO of Auchan Portugal, to the newspaper Expresso. He also announced that the next Jumbo hypermarkets to be remodelled will be those located in Faro, Figueira da Foz and Alfragide. The remodelling of the emblematic Jumbo de Cascais, with which the French group entered the Portuguese market almost 50 years ago, is planned for 2019 and the process will last about three years.

Also, the switch to a single brand to be used in all store formats (Jumbo or Auchan) must be decided during 2018. In Spain, as already reported by FoodRetail, the firm has opted for the Alcampo brand, which will gradually replace Simply in the coming years.


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