Conad acquires Auchan Retail Italia to become Italy’s largest retail chain

The Conad group, one of the leaders in the Italian large-scale retail sector, has acquired almost all the points of sale of Auchan Retail Italia located in Italy (Auchan and Simply brand hypermarkets, supermarkets and convenience stores).

The operation does not include supermarkets run by Auchan Retail in Sicily and Lillapois drugstores.

The deal, which is awaiting the approval of the antitrust authority, will increase Conad’s market share from 12.9% to 19% and raise its consolidated revenue to €17.1 billion (compared to €13.4 billion in 2018), ahead of its rival Coop.

However, Conad will have to address the French chain’s negative economic situation.

According to Mediobanca reports, between 2013 and 2017 Auchan experienced an almost 20% decline in revenue from €4.87 billion to €3.96 billion, while losses soared to €275 million compared to €82 million in 2013.

Auchan Retail has also recently announced its intention to sell its operations in Vietnam (18 stores), which in 2018 generated revenues of €45 million.