Auchan will withdraw from the Chinese Market
Auchan has become another French retailer rumored to have "lost" the Chinese market after Carrefour.…Auchan has become another French retailer rumored to have "lost" the Chinese market after Carrefour. On December 12, according to a number of media reports, the Auchan board decided that the business of Auchan Supermarket in the Mainland of China would be entirely handed over to the brothers, Da Runfa, which will carry out in-depth renovation of Auchan stores in accordance with the goals and vision formulated by both sides and its successful experience. So far, Auchan has not responded to this.
On December 5, Lianshang reported that Auchan China had decided to turn its five stores in South China into a Da Runfa model. Before that, Auchan withdraw from China had not revealed any obvious clues. In April this year, Auchan agreed to purchase products from Tmall Supply Chain, with a total purchase amount of RMB 40 million. In September this year, Tmall Supply Chain agreed to sell the consignment products of Auchan Jiading, a subsidiary of Auchan, in Tmall.
According to Auchan’s official website, Auchan’s retail development has covered 17 countries and regions in three continents. Auchan has 3778 stores, mainly in three modes: large-scale stores, supermarkets and community stores.
In 2000, Auchan Group entered into a joint venture agreement and cross-shareholding with Runtai, Da Runfa’s parent company. In 2011, Gaoxin Retail, a joint venture of Da Runfa and Auchan, was listed in Hong Kong. According to the prospectus at that time, Jixin, a new joint venture between Runtai and Auchan, was the controlling shareholder of Gaoxin Retail. In November last year, Ali held 36.16% of Gaoxin Retail directly and indirectly for HK$22.4 billion. Since then, Ali have been integrated and transformed Da Runfa and Auchan, which belong to Gaoxin Retail.