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Auchan informed about the liquidation of two more hypermarkets in Poland. After the planned closures the chain will have 70 stores.
Low sales cause of closure
Auchan, a large-format retail chain present in Poland since 1996, has decided to close two hypermarkets in Grudziądz and Lublin on 27 September.
As early as in June, announcements were issued about the closure of shops in Dąbrowa Górnicza and Mysłowice. These were former Real hypermarkets, which Auchan took over in 2015. They are to be closed at the end of August this year. The immediate cause of the liquidation turned out to be insufficient profitability, which is a result of low turnover and unfavourable rental conditions. This solution entails group redundancies of the network’s employees, who are to be provided with adequate redundancy payments.
Hypermarkets are going downhill
At the end of 2019, there were 74 Auchan hypermarkets in Poland, after the planned closures, this number will decrease to 70 stores. Tesco, which is gradually disappearing from Poland, faces similar problems. As you can see, large hypermarkets have lost their popularity due to the growing interest in small discounters. Nowadays, society is focused on convenience and time saving, so large shops are no longer as crowded as before. The hypermarket channel has been experiencing the greatest problems among large-format stores for the last few years, and its market share is falling.
According to PMR’s data, in the years 2017-2020, it even recorded drops in value.