Auchan to invest up to $360mn into its Russian network

By bne IntelliNews December 14, 2016

French hypermarket chain Auchan says it is going to increase its investment into its Russian operation from RUB17bn in 2016 to RU22bn in 2017 ($362mn). Russia is already the third most important market for the company in the world.

The retailer has become a household name in Russia and has been expanding its network steadily into Russia’s 83 regions. The company says Russia has already absorbed the impact of sanctions and solved the supply problems they threw up.

Auchan is typical of the large retailers for whom sanctions have been a boon, allowing them to undercut their smaller competition and grab a larger market share through consolidation and investment into expanding the company’s footprint. Several other large retailers have similar strategies.

Auchan entered Russia in 2002 and opened its 100th store in December 2016, reports Reuters. The company plans to open ten hypermarkets a year in Russia going forward as well as 20-30 supermarkets.

The company has already invested RUB200bn ($3.3bn) into its Russian operation and plans to invest another RUB20bn-RUB30bn in 2017 on top of the RUB22bn it invested in 2016 and RUB17bn in 2015.

It is also building a RUB2.5bn meat processing plant in the Tambov region in central Russia, which is due to open early in 2017.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Siemens fumes as worst suspicions on Crimea turbines confirmed

German technology major Siemens said on July 21 it has "credible evidence" that all four gas turbines supplied for a power plant in the south of Russia were locally modified and illegally supplied ... more

Azerbaijan jails Russian blogger for three years for Nagorno-Karabakh visit

A Baku court sentenced Russian travel blogger Alexander Lapshin to three years behind bars for having ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Most Read

  1. Siemens considers quitting Russia
    8 days ago
  2. Wildfires hit Croatia and Montenegro’s Adriatic coast
    4 days ago
  3. Nato still has a mixed reception in Emerging Europe
    8 days ago
  4. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    3 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    9 days ago
  1. CHINA RISING: When sleeping giants meet
    12 days ago
  2. Belarus’ retail king Euroopt goes on the road
    17 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    20 days ago
  4. Moldova, Bulgaria, Poland, Albania and Latvia to lose more than 40% of their populations by 2100
    1 month ago
  5. Siemens considers quitting Russia
    8 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss