Retail Crisis Deepens: Auchan to Cut Ties with Two More Hypermarkets

A significant social plan affecting nearly 2,400 jobs had already been unveiled at the end of 2024. The closure of three hypermarkets – in Woippy (57), Bar-le-Duc (55), and Clermont-Ferrand Nord (63) – was revealed at that time, along with a supermarket in Aurillac (15) and six convenience stores. In total, 466 jobs were thus eliminated. Concurrently, the group announced its intention to reduce the floor area of 60 of its hypermarkets by approximately 20%, raising fears of additional job cuts.

The goal is clear: to return the once golden goose of the Mulliez family to profitability. In 2024, its holding company recorded a staggering net loss of €1.2 billion. In this context, France stands out as a sore point, as its revenue fell by about 5% year-on-year. More worryingly, profitability is a concern. The profit before interest stands at €10 million, a number that is unsatisfactory when the revenue reaches €17 billion. The urgency, therefore, for Guillaume Darrasse is to quickly cut the loss-making sectors.

This time, it’s the Paris region that is affected. The issue is not new. At the end of August 2024, the specialized media La Lettre had announced the transfer of two stores, as well as that of Les Mureaux, to E.Leclerc, due to their struggles. A year later, the Sarcelles store does not seem to have attracted the independent cooperative’s interest.

The case of this closure could also become a political issue: in the town of Sarcelles, the poverty rate is 35% according to INSEE, 20 points higher than the national average. The closure of the hypermarket is therefore likely to be criticized by local elected officials. In Clermont-Ferrand, the consequences of the Auchan store closure on the Croix-de-Neyrat neighborhood had been criticized by Mayor Olivier Bianchi (PS) and Deputy Marianne Maximi (LFI).