French supermarket group Auchan has revealed its intention to shut 25 stores throughout Spain and eliminate 710 jobs.
Auchan operates under the Alcampo brand within the Spanish market.
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This decision is a response to the evolving consumer preferences which now favour smaller retail outlets and online shopping over large-format supermarkets, reported Reuters.
The company’s strategic shift will emphasise the development of its smaller store formats alongside bolstering its e-commerce operations.
The closures will impact locations across 13 Spanish regions, including Madrid, Valencia, Galicia, Navarra, La Rioja, and Asturias.
Auchan employs approximately 23,300 individuals in Spain. The restructuring plan was communicated to labour unions during a meeting held Yesterday (8 May).
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By GlobalDataThe company was quoted by Murcia Today as saying: “In this transformation process, it is essential to recover results and ensure sustainable growth in each and every shop. This is why Alcampo is launching a staff adjustment plan, a decision which, although difficult, is responsible and necessary.”
Spanish trade union CCOO said it received list of stores affected by the collective layoffs, which will affect several hypermarkets among other store types.
However, specific supermarkets set for closure have not been disclosed by Auchan.
CCOO commented on the situation: “This is all the information the company has provided to us. Now, the next step in this process initiated by Alcampo management is to establish a collective dismissal negotiating committee.”
At the first meeting, the company must give all the important papers to the worker unions so they can look them over and start discussing, said the union.
“At CCOO, we will address this difficult situation, which is new to the company, with a clear understanding that the main objective is to maintain employment and, if workers leave, ensure they leave in the best possible conditions,” the trade union added.
Late last year, Auchan announced a decision to cut over 2,000 positions in France as part of its broader corporate restructuring efforts designed to stimulate growth.
