French retail group Auchan has recorded a 4.3 per cent increase in like-for-like overall sales, thanks in part to the success of its operations in global markets, particularly China and eastern European, where expansion has “continued at a brisk pace”.
Over the past 12 months, the group has strengthened its position in Russia and started operations in Ukraine, both of which have contributed towards a 8.4 per cent rise in overall hypermarket sales to €31.8bn excluding taxes.
While the company’s French hypermarket business still accounts for some 48 per cent of total hypermarket sales, and posted a 2.7 per cent sales increase to €15.3bn, Auchan’s “dynamic” international development has driven sales, the group said in a statement.
Sixty hypermarkets were opened or acquired during the year, including 27 in China, the first two Auchan hypermarkets in Ukraine and the conversion of 12 former Ramstore stores to the Auchan City banner in Russia.
A joint venture was also set up in Dubai, of which the Group will take a 10 per cent stake, which will develop as an Auchan chain as from 2009.
Auchan is also expected to complete the conversion of its European supermarket outlets to the Simply Market banner and, according to the group, this process contributed to a 2.9 per cent rise in supermarket sales to €6.9bn.
The chain now comprises 363 fully-consolidated supermarkets, corresponding to half of the total in western Europe and Poland, where it started to operate in 2008.
After opening 37 new supermarkets and closing 19 during the year, Auchan said the total number of fully-consolidated supermarkets came to 726, 18 more than in 2007.
For 2009, the group said that it intended to continue its policy of developing its core businesses and its new formats by “investing reasonably”, while taking into account the more difficult economic background.
With around sixty hypermarket openings scheduled for the year, Auchan added that it expected to exceed the 500-store mark by the end of the year.
