Russia: Auchan plans to open small convenience stores in Moscow

According to RBC Daily, supermarket chain Auchan is looking to open a number of convenience stores in Moscow as it aims to expand its presence in the Russian capital.

It is likely that the 100 square metre stores will be developed with franchise partners and as such will be the smallest franchises operated by Auchan worldwide. This will reportedly reduce the risk for the French company as any charges would be passed onto franchisees.

"Now we are waiting for proposals on specific premises in the city, but we are ready to test smaller stores”, Auchan representatives said.

The expansion is aimed at increasing volumes of Auchan's private labels in Russia, especially the economy range Kazhdyi Den (Everyday).

The first units are expected to open on the Moscow underground network as free space for grocery stores in the city is limited while construction work is carried out.

Auchan is not the first major European retailer to trial convenience stores in Moscow. Germany-based Metro Group opened a similar chain of independently-owned Fasol branded convenience stores in the city two years ago.

Source: RBC Daily