According to the reports for 2018, Auchan does not seem to have had a great year, with a revenue down 3.2%, but the retailer is enjoying some very satisfactory results in Africa.
Established in Africa since 2015, with 28 stores in Senegal and 2 in Mauritania, the Auchan activity in Africa remains minimal for the group (0.1 to 0.2% of the global result), but it is particularly profitable. In fact, the African revenue has more than doubled, from 40 million euros [45.4 million USD] in 2017 to 101 million euros [114.6 million USD] in 2018 (+152.5%).
The beginnings in Senegal were not easy. A “Auchan, get out” collective, formed by small store owners, protested the establishment of the group in Africa, accusing the French retail giant of dumping and unfair competition. Auchan arrived in Senegal in 2015, first under the Atac name, and then acquiring the Citydia stores in September 2017. Today, it has 28 stores, all under the Auchan brand.
In Mauritania, expansion is taking longer. Of the 20 stores planned, only two have opened so far.
Africa: the new place of competition
Auchan is well integrated in Africa but today, the group must compete with another French group: the CFAO group, which opened its first Carrefour Market store in Dakar in January 2019. It also plans to establish three of its new low-cost stores, Supeco, intended for the lower classes.
Contrary to Casino, which is already established in Africa and focuses on high-end customers, CFAO and Auchan target the same clientele.
Source: leral.net