REUNION: Auchan agrees deal for eight-store opening

By Hannah Abdulla | 30 January 2014

Auchan has signed an affiliate agreement to open eight stores on Reunion Isl.

Auchan has signed an affiliate agreement to open eight stores on Reunion Isl.

Auchan has signed an agreement with two local businesses to open eight stores on Reunion Island off east Africa.

The eight stores will comprise two hypermarkets in Saint Louis and Saint Pierre and six supermarkets in Tampon, Saint Joseph, Saint Denis, Saint Gille les Bains and Plaine des Cafres.

They will operate similar product offering, sales and promotion policies and Auchan will also manage part of the supply contract. The new affiliates are businesses belonging to the Thien Ah Koon family and to David Soui-Mine, renowned local distribution professionals. 

Auchan has highlighted its desire to develop new partnerships, particularly in the field of multi-brand retail both in France and abroad.

By the end of last year, the firm opened around 20 new hypermarkets in Russia. However the company played down talk it is to open its first hypermarket in Belarus in 2015.

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Groupe Auchan signed affiliation contracts for 8 shops on Reunion Island. The contracts enter into force this January. 

On 28 January, 2 hypermarkets will join the Auchan brand, while 6 supermarkets will do likewise with the Simply Market brand on 29 January. The stores’ product offer and sales and promotions policies are similar to that of the brands they join and meet the expectations of local consumers. Groupe Auchan will also be ensuring the supply of part of the shops’ goods.  

The 2 hypermarkets are located in Saint Louis and Saint Pierre. The 6 supermarkets are in the towns of Tampon (2), Saint Joseph, Saint Denis, Saint Gilles les Bains, and Plaine des Cafres. 

The new affiliates are businesses belonging to the Thien Ah Koon family and to Mr. David Soui-Mine, well-known distribution professionals on Reunion Island. 

This operation illustrates Groupe Auchan’s desire to develop new forms of partnership, in particular in the field of multi-brand retail (hypermarkets and supermarkets) both in France and abroad. 

Original source: Auchan

Sectors: Emerging markets, Retail

Companies: Auchan

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