Auchan Leaves Russia

• 24.10.2024, 17:23

The company has already found a buyer for its business.

The French hypermarket chain Auchan has decided to leave the Russian market, La Lettre reports. The company has already found a buyer for its business in Russia and is in the final stages of negotiations. It is also planning to cease operations in Hungary, but the chain will retain its presence in Ukraine, the publication notes.

As Le Figaro, in turn, writes with reference to a source close to the company, Auchan has two potential buyers for the Russian business, but their names have not yet been disclosed.

"Unlike other, less cautious European distributors, the Auchan chain strictly complies with the sanctions imposed against Russia. It does not invest or return a penny. This puts it at a huge disadvantage compared to local players owned by Russian oligarchs who can do nothing with their money except invest it in their business in Russia,” the source explained the reason for the company’s departure, which had previously stated that it did not intend to leave the Russian market.

Auchan began operating in Russia in 2002, specializing in the sale of food, building materials, and clothing. After the war in Ukraine began, the Russian division began to operate autonomously, without support from the parent company. In 2023, Auchan LLC’s revenue decreased by 4.7%, amounting to 226 billion rubles, and net profit fell from 4.7 billion to 460.2 million rubles.