Auchan unveils ambitious plans in Poland

French retailer Auchan intends to invest PZL3.5bn (US$1.09bn) in its hypermarket operations in Poland. This means it doubles its capital investments in Poland. Over the next few years Auchan intends to open two or three new shopping centres per year. According to the press agency Polish News Company, Auchan already obtained land to set up ten shopping centres, in collaboration with Decathlon, Leroy Merlin and Orsay. Like Auchan, these retailers are also owned by members of the French Mulliez family.
Up to now Auchan openend 19 hypermarkets in Poland, investing PLZ3.2bn (US$1bn) and this year two more will be added. Auchan expects its total revenues in Poland to rise by 6 per cent over the 2005 revenues, which totalled PLZ3.97bn (US$1.23bn). According to François Colombié, Auchan’s managing director hypermarkets, the retailer has no aspirations for market leadeship in Poland’s hypermarket sector. Currently Tesco is Poland’s leading hypermarket retailer but its position is challenged by Carrefour who intends to double its current number of Polish hypermarkets (32) by 2010.