"Auchan" will not be a shop for cheap goods

In the network, more expensive products will appear and the range will increase.
The Russian "Auchan" decided to change the commercial model, the general director of "Auchan Retail Russia" Francois Remi told Vedomosti. The network was positioned mainly as a discounter with an emphasis on cheap goods, Remi explained: "We call them products of the first third of the assortment. The task now is to give customers a more complete offer, especially in the second and third third of the assortment, i.e. in the middle and premium segments. " "Auchan" wants to remain a discounter in the eyes of buyers, assures Remy: "Even if it's a premium product, we should have it cheaper [than competitors]."

The number of commodity names in the assortment of "Ashan", Remi continues, can increase by 30-40%, and now in "Auchan" usually about 50 000 kinds of goods. So the retailer hopes to increase the number of goods in the buyer's basket and raise traffic - for the last year it shrank, the retailer lost market share, admitted Remi, but refused to give specific figures.

According to Infoline, which is quoted in the annual report of X5 Retail Group, the share of "Ashan" in Russia for 2017 decreased from 2.9 to 2.2%.

The decrease in sales of "Auchan" is connected with the loss of the middle class, says Infoline general director Mikhail Burmistrov. The calculation and share in the assortment of the cheapest goods were inadequately large, he explains: "It is extremely difficult to return the middle class. The results of the change in the commercial model will have to wait a long time: the image losses from the rate on the cheapest and not always high-quality goods were serious. "

The new model is already being tested in three stores, including in "Auchan" in the shopping center "Aviapark". According to Remi, the store is divided into zones: the "Books" department with wooden shelves and a children's playground with games, the department of clothes and shoes as a store in the store where the goods are laid out according to the principle of the collection - a combination of clothing in style and color. Racks will be lower, so that the buyer sees the whole store, and the colors of the trading hall will change: instead of a combination of white, red and green, gray and beige shades.

Why change?

Recently, all major hypermarket chains in Russia have decided to update formats, concepts and approach to working with clients. Two factors influence, says Bain & Company partner Eugene Belashchenko. The first: the constant increase in the areas of modern trade, mainly shops near the house. But, for example, Lenta is also actively developing hypermarkets and supermarkets. For weekly major purchases of products, more and more offers are becoming available.

Jan Dunning, general director of the retailer Lenta

... The role of hypermarkets is to create experience for the buyer, impressions. We need to find new approaches, because, obviously, part of our business will go online.

The second, Belashchenko continues: active development of convenience stores. In the perception of the consumer, they have become more competitive in price, some expand the range. People choose shopping near the house, and not a long trip to the hypermarket. Developed and specialized non-food retailers and online trading, Belashchenko reminds, and few of the large-format stores are not reducing the flow of consumers in comparable stores.

Experience of competitors

The network "Okay" decided to become a network of compact hypermarkets, the general director of the group Miodrag Boroyevich told: they are created on the principle of a store in the store, the hall is divided into large zones with specialization - fresh fruits and vegetables; delicacies; meat; baking, etc. To a more compact format turned and X5 with hypermarkets "Carousel". The buyer became less interested in classic large stores and Internet sales are developing, explained the representative of the retailer.

"Lenta" is also gradually changing, adjusting to the requirements of customers, said in an interview with "Vedomosti" its general director Ian Dunning: for example, before fruit and vegetables was an ordinary department, and now it is the heart of the store, they are allocated more space.

Guessing the future

All hypermarket operators are trying to understand what to do with a large trading space so that buyers want to invest in a trip to a store outside their home, Belashchenko explains from Bain and cites Chinese supermarkets Hema owned by Alibaba (close to Russian hypermarkets). Hema entertains customers to increase traffic: for example, there is an application that talks about products during a visit to the store, food is being cooked on the spot, etc. "Similar ideas were suggested by European hypermarkets," concludes Belashchenko.

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