Auchan and Carrefour try to adapt

Food consumption drops in Italy and major distribution brands are struggling.

Consequence of the economic crisis, the slowdown of food consumption surprises with its scale. In Italy, the demand for food has declined and should register -2.2% in 2013 and -0.5% in 2014, according to a report by the National Association of Cooperatives.

Faced with this situation, Auchan has chosen to reduce working time by 20% and to set up an operation considered as a "new form of outsourcing" by unions. Auchan has transferred the control of 13 of its assets (shopping malls, stores) on the 57 held in Italy in a new company. The new company is 52% controlled by Morgan Stanley and holds nearly € 635 million of assets.

From its part, the Carrefour group denies rumors on the sale of its Italian operations in Conad and launches new formats to diversify its outlets.

Coop Italia, the No. 1 of large areas in Italy with 18.5% market share, considers that the end of crisis will not be possible without a concerted effort between retailers and producers.

source : les echos fr