Auchan operates at lower margin in Romania than in France

The margins operated by retailer Auchan in Romania are 12-13%, while the same margin on the French market stands at 22%, Regis Mougel, manager of the Auchan hypermarket network in Romania told ZF. The statement of the Auchan official comes after the representatives of retailers and employers and unions in the foods industry met with the Agriculture Ministry, after the latter accused retailers of levying taxes that caused prices to go up and suppliers’ profitability to go down. “We are operating with a lower commercial margin in Romania than in France, which is only logical, considering the development of the Romanian market and the purchasing power of local consumers,” Mougel says. He believes talks between retailers and Romanian producers need to focus on comparing profit margins and the impact of commercial policies on the end consumer.