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Auchan, a French retail chain that operates in Spain under the Alcampo brand, has announced its intention to close 25 stores throughout the country, which will result in the loss of 710 jobs.

According to reports, the decision is the consequence of evolving consumer preferences, which have led to an increasing preference for online purchases and smaller stores over traditional large-scale supermarkets.

The company is concentrating its strategy on the expansion of smaller store formats and the reinforcement of its digital retail channels in order to adjust to these changes.

The restrictions are scheduled to occur in 13 regions of Spain, including Madrid, Valencia, Galicia, Navarra, La Rioja, and Asturias.

Approximately 23,300 individuals are presently employed by Auchan in Spain. On May 8, labour unions were informed of the restructuring plan’s specifics during a meeting.

The organisation declared, “It is imperative to achieve sustainable growth and recover results in each and every shop during this transformation process.” This is the reason why Alcampo is implementing a staff modification plan, a decision that is both responsible and essential, despite its difficulty.

Auchan has not yet publicly identified the specific stores that are scheduled for closure, despite the fact that the CCOO trade union in Spain has reported obtaining a list of affected outlets, which includes several of its hypermarkets.

CCOO commented on the circumstance, stating, “This is the entirety of the information that the company has furnished us with.” The subsequent phase of this procedure, which was initiated by Alcampo management, is the establishment of a collective dismissal negotiating committee.

Auchan is required to submit all pertinent documentation during the initial meeting in order for union representatives to evaluate and commence negotiations, according to the union.

The union concluded, “At CCOO, we will confront this challenging situation, which is novel to the company, with the explicit understanding that the primary goal is to preserve employment and, in the event that employees depart, to guarantee that they do so in the most favourable manner possible.”

In late 2018, Auchan made the decision to eliminate over 2,000 positions in France as part of a broader restructuring initiative designed to stimulate development. This announcement is a continuation of that decision.