Auchan gets 47% Hungarian ownership
It has been more than two years since it was announced that Dániel Jellinek's Indotek group would join the Auchan hypermarket network. In the meantime, many things have changed and affected the negotiations: war has broken out in Hungary's neighbourhood, the Hungarian economy has gone into recession, retail volumes have fallen significantly and the government has taken measures (e.g. price freeze, stock and residue rules, mandatory sales promotions) that have made things difficult for the chains.
Auchan's structure is technically divided into two parts: the retail grocery store itself, and the "esplanade" in the hypermarket building, where various smaller stores are located. The latter also offers the possibility of real estate exploitation. According to Dániel Jellinek, the company benefits from attracting customers, which is a good sales opportunity for others.
Auchan Commercial Ltd currently has 5,905 employees, and in 2022 it made a loss of HUF 1.8 billion on a turnover of HUF 354 billion.
This was the second-worst performance behind that of Spar.
The close business relationship between Indotek and the hypermarket chain goes back many years, with a number of Auchan stores operating in Indotek shopping centres, so the new owner of the French company is in fact a close acquaintance.
Jellinek's main focus so far has been on warehouses, industrial properties, hotels and malls. The newly acquired minority stake of 47% is a strong position, given that Indotek has veto rights on important issues.
Food retailing is a profession, and I don't think we know how to do it anymore, and a global multinational company is in a much better position in international procurement,
the Hungarian businessman said, highlighting the competitive advantage of Auchan (and other multinationals) compared to Hungarian-owned chains.
Dániel Jelllinek did not comment on Auchan's specific market plans.
Cover photo: Getty Images
