Numerous international businesses have halted business in Russia over the country’s invasion of Ukraine, including brands such as McDonald’s, Apple, Adidas, Netflix but also international offices of firms like Goldman Sachs and the Big Four.
But Auchan CEO Yves Claude said pulling out of Russia could lead to asset losses and exposing local managers to potential legal troubles. The company employs 30,000 people in Russia and has 231 stores. It posted revenues of €3.2bn from those establishments last year. Speaking with French newspaper Journal du Dimanche, Claude said Auchan also continues operating in war-hit regions in Ukraine under extreme conditions and that the supermarket’s mission is to feed people in both countries. Auchan employs around 6,000 staff in Ukraine at 43 supermarkets.
Ukraine’s foreign minister Dmytro Kuleba criticised Auchan’s decision suggesting that it has prioritised its financial interests and turned a blind eye to the deaths caused by Russia’s invasion. He called for a boycott of Auchan, hypermarket chain Alcampo as well as retailers Leroy Merlin and Decathlon.
In Luxembourg, where the French retailer has been firmly installed since 1996, there are over 1,000 employees and 10 shops. Decathlon meanwhile has a minor presence in Luxembourg with one store in Luxembourg City, which opened February 2021.