The case ‘Auchan: Successfully Traversing the Russian Retail Landscape?” talks about the journey of the French retail giant, the Auchan Retail Group, in Russia. The case starts out by mentioning Auchan’s market entry strategies in 2002 and the retail formats it adopted in the following years, which led to its emergence as the second largest retailer in Russia within a decade. The case then documents the perils faced by Auchan as a result of the Ukrainian conflict of 2014 that altered diplomatic relations between the European Union and Russia. The case mentions how the changing retail landscape of Russia also created hurdles for Auchan’s growth. Later, it describes in detail the measures taken by Auchan to bring about a transformation in its business in order to improve its prospects. The case ends with questions about the future of Auchan in Russia and the road it needs to take to remain a force to reckon with in the Russian retail landscape.
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The case is structured to achieve the following teaching objectives:
Analyze the market entry and expansion strategies of a multinational retailer in a developing nation.
Assess the factors that prompted a retail company to adopt a particular retail format.
Explain the impact of political and economic factors on a retailer.
Examine the re-organization strategies of a successful retailer facing a downturn in its fortunes.