New-generation retailer NEW-GENERATION RETAILER To change the lives of our customers, staff and partners, we decided to invent a different retail experience that we call new-generation retail. Why? Because with the phygital shopping experience we offer – meshing together physical stores with our digital lifestyles – we want all our customers to live better by eating better. Campaigners for Good, Healthy and Local, we engage our customers, along with our staff, suppliers and producers, in a shared dynamic of positive change that benefits everyone. We put people at the heart of our business, because we want to reinject meaning and appeal into all the work involved in bringing food to our tables. 1 AUCHAN RETAIL NEW-GENERATION RETAILER A unique and proven model CENTRAL AND EASTERN Auchan Retail is one of the few companies among EUROPE the world’s leading food retailers where staff can benefit Russia, Ukraine, Poland, Romania, from its success through employee share ownership. Hungary, Tajikistan FRANCE 520 644 sales outlets sales outlets WESTERN EUROPE Spain, Portugal, Italy, A LEADER WITH GLOBAL REACH Luxembourg Just over 55 years after its foundation, 2,049 Auchan Retail now operates across sales outlets 17 countries, from Europe to Asia and Africa. We rank as the 11th largest food retailer in the world and one of the most international, generating more than 65% of our annual ASIA revenue outside France and with upwards Mainland China, Taiwan, Vietnam of 4,000 branded stores around the world. AFRICA This controlled expansion has been achieved Senegal, 841 through a mix of organic growth and local Mauritania and sales outlets Tunisia(1) franchise agreements and partnerships. 30 STRONG MARKET POSITIONS sales outlets Auchan Retail achieved revenue of €50.3 billion in 2018, and invested €1.4 billion. With its brand popular among consumers, the company holds strong positions in all the countries where it operates. A FAMILY AND EMPLOYEE SHAREHOLDING STRUCTURE As the world’s 35th largest employer with 354,851 employees, Auchan Retail is one of th th the few companies of this scale to belong 35 largest 4,084 11 largest to the people who make it what it is: capital employer sales outlets under retailer in ownership of this profoundly people-centred in the world the Auchan banner the worldl(2) company is shared between its founding Figures at 31 December 2018 family and 261,067 employee shareholders. (1) Equity partnership with Magasin Général (81 sales outlets). (2) Source: Deloitte study. 2 3 AUCHAN RETAIL NEW-GENERATION RETAILER Giving our customers the keys to better food Consumers are increasingly careful about what they eat, about environmental protection, and about making sure food is sustainably produced. The world is changing, and Auchan Retail is changing with it. Putting health first by looking after our customers and staff, our planet and all its people is the first pillar of our vision: “Auchan changes lives.” ALL CHANGE! To encourage each of us to change our behaviour little by little, we have to know how to reach out to everyone. That’s why we’re taking steps to mobilise our entire ecosystem, right up of trust and achieve continuous improvement and down the line. We’re uniting not just food in our procurement channels, to guarantee food producers and manufacturers, but nutritionists security, environmental standards, and safe and great chefs, and the butchers, fishmongers working conditions. It also helps reduce and bakers in our stores, as well as our partner pesticide use everywhere in the world. And now, 100% of our stores A TASTE FOR GOOD AND HEALTHY non-profits, in one powerful movement with blockchain technology, our customers sell products loose AT THE HEART OF OUR STORES – Campaigners for Good, Healthy and Local. can trace their food right back up the chain by weight We showcase fresh, seasonal and healthy Our campaigning revisits every facet of how we to the field or the farm. products in our stores so customers are work, with the end goal of giving our customers tempted to eat them more often. Our in-store food they can trust. HEALTHIER-THAN-EVER RECIPES chefs demonstrate how to prepare We know that to set an example, we have “homemade” dishes using products from STARTING WITH RESPONSIBLE to get our own house in order – so over 302 responsible our shelves. Customers are invited to enjoy SUPPLY CHANNELS three years we’ve re-evaluated every one of supply channels tastings, technical demonstrations, worldwide We’ve undertaken to put in place 150 new our own-brand food products and reduced fat, and cookery classes with food artisans like responsible supply channels every year, working additives, and preservative content. All products our butchers and bakers, and we offer areas closely with locally based farmers around are guaranteed GMO-free, and we’re on where people can sit down to meals from the world to provide Auchan Retail with staples our way to also eliminating palm oil. Even our deli rather than just a basic fast-food snack. like beef, tuna and rice – even in countries with these health benefits, they’re still 20-30% 100% With real cooking and real flavours becoming where such channels don’t exist yet. cheaper than competing products of equivalent of own-brand products central in our stores, everyone can learn re-evaluated This approach enables us to build relationships quality from national brands. how to enjoy them! 4 5 AUCHAN RETAIL NEW-GENERATION RETAILER Taking meaningful action Coming together to change everyone’s lives for society Auchan Retail Youth Foundation The Auchan Retail Youth Foundation has been running for over 20 years and now operates in 12 countries. and for the planet In line with our vision as Campaigners for Good, Healthy and Local, it supports community initiatives that focus Being Campaigners for Good, Healthy and Local means going on promoting healthy eating and healthcare for its historic the extra mile in the care we put into our products, target audience, vulnerable young people. We encourage optimising their production and life cycle, and reducing waste. our staff in each participating country to get involved in voluntary activities that make a real difference to people at a local level. With initiatives like community kitchen gardens and food stores, sports clubs and work training, they might change the life of one child, one young person, or a whole neighbourhood… Weave our Future Foundation PROTECTING THE CLIMATE Auchan Retail set up the Weave our Future (WOF) We’re striving to limit our ecological footprint Foundation in 2014, determined to make a lasting and contribute to combating climate change. contribution to bettering living and working conditions To give an example, we’re gradually replacing over the long term for factory workers and their families the most environmentally harmful coolants in developing and emerging economies, particularly in our refrigeration systems with greener in the garment industry. It’s intended as a kind of social laboratory that rallies local factory owners and social alternatives. We’re also reviewing our ranges services in Vietnam, Bangladesh and Cambodia. to prioritise locally sourced products and reduce BREAKING DOWN DISABILITY BARRIERS the miles they have to travel to our stores. Over more than two decades, Auchan Retail To preserve primary vegetation – the lungs has been taking proactive initiatives to create of our planet – we’re cutting down on our use an inclusive environment for employees 216 of certain products such as palm oil. and customers with disabilities. These include projects supported by our foundations making workstations more accessible by fitting worldwide in 2018 TOWARDS LOW-IMPACT PRODUCTION ramps, Braille signage, or specially designed RESPONSIBLE INNOVATIONS AND CONSUMPTION seats and cash registers; offering adapted It’s worthwhile seeking to preserve the world’s Shifting towards a circular economy means working hours; training managers in fostering ocean resources through aquaculture, but we a more frugal use of natural resources. We’ve an inclusive environment; and raising staff’s –5.8% Reduction in electricity used per m2 of floor area in our need to go further still, because feeding been trying to combat food waste for a long awareness of difference and the need stores in 2018 the farmed fish still uses up a third of fish caught time – giving away products that are used for tolerance. Our employees in Poland with globally. In France, InnovaFeed and Auchan to make millions of meals, selling staple goods hearing impairment receive specialised training. Retail teamed up to create a responsible supply by weight so none is wasted, and raising Stores in Ukraine and Spain are equipped channel for farmed trout that substitutes wild awareness among staff and customers. with a video system for interpreting sign language 600 tonnes of plastic bottles fishmeal with insectmeal. In another pioneering We strive to reuse packaging, and are meeting for the use of both customers and staff. Also collected in our stores in France initiative, we’ve brought in a range of 50 fruits our customers’ needs by leaning into ecodesign, in Ukraine, an integration-through-work project and vegetables guaranteed without pesticide using more recycled and/or recyclable for young people with Down’s syndrome has residues. Under this system, over 33,000 tonnes raw materials, and making products more had backing for three years. In Italy, free home of fruit and vegetables were grown in 2018, repairable. And since we can’t achieve delivery system is available to disabled customers. 66% of waste from on agricultural land treated with 40,500 litres absolutely zero waste, we sort it to make And in France, the Auchance programme our hypermarkets is recovered less chemicals. recycling and recovery easier.