The Group carefully monitors compliance with embargo and sanctions conditions, particularly those relating to the transfer of money to and from Russia.
Auchan Retail has suspended all investment and financial activities for its Russian subsidiary since the first days of the conflict, leaving local management to operate independently.
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Auchan in Russia
Retail activity in Russia declined sharply throughout last year.
This was mainly due to the drop in traffic in stores in large shopping centers. In fiscal year 2022 and the first half of 2023, the retailer used stockpiles accumulated since the beginning of the armed conflict.
Taking into account the above premises, the Auchan Group carried out impairment tests, which led to a write-off of EUR 122 million.
As of December 31, 2023, the provision related to the Russian operations corresponded to an overdraft of EUR 712 million.
The company in Russia had sufficient liquidity at the end of last year (EUR 178 million) and used a credit line of RUB 10 billion. In accordance with European sanctions, Auchan in Russia has not received any new financial support (investments, intra-group financing, etc.) from the parent company since February 24, 2022.
Auchan in Ukraine
In 2023, Auchan Retail in Ukraine experienced disruptions in customer traffic due to alarms and population migration to the west of the country, where the Auchan Retail network is less dense. At the end of December 2023, Auchan announced the closure of stores in Zaporozhye and Kryvyi Rih and the maintenance of e-commerce operations in these two cities. All interested employees were offered new positions in other stores in the country and support in relocation. As of December 31, 2023, stores in Ukraine recorded a loss of EUR 3 million.
– Since the beginning of the conflict in this country, Auchan has supported the local civilian population by providing healthy food at the best prices and taking care of the safety of employees. In these conditions, the hypermarket in Odessa, which was damaged during the bombing of the city in May 2022, was reopened on April 21, 2023. The reopening shows the willingness of Ukrainian workers to rebuild their country with the support of the Auchan Group – the company said in its 2023 report.
Since July 2022, Auchan has opened (or reopened) 5 stores in Ukraine: including two in Kyiv and one each in Irpin, Bucha and Odessa. This brings the number of stores operating in the country to 39, excluding e-commerce.
