article_detail

Earlier this month, popular supermarket chain Alcampo delivered the shock news that it will be closing down 25 of its supermarkets in Spain, resulting in the dismissal of 710 employees. While the French company was initially tight-lipped about which stores would be facing the axe, it has now begun to outline where the cuts will hit hardest.

 

The company, which is known in France by the name ‘Auchan’, has not offered a detailed explanation for the downsizing, but the trend is clear. Large-format supermarkets are falling out of favour as consumers turn to faster, more convenient shopping alternatives.

 

Alcampo, which operates 80 hypermarkets in Spain, is seeing financial decline not only here but also in France, Poland and Romania.

 

The closures are part of a larger cutback by parent company Auchan Retail, which plans to scale down 152 stores. Not all of them will close, but up to 25 in Spain are expected to shut their doors entirely, especially in locations with low foot traffic.

 

 

While a full list has yet to be published, some locations are already seeing changes. In Madrid, the stores in Alcorcón, La Vega and Majadahonda have reduced their retail space.

 

In Andalucía, supermarkets in Albacete, Sanlúcar, Jerez and Sevilla Este are doing the same. These are believed to be among the least profitable locations and may be first in line for permanent closure.

 

In Madrid alone, 38 Alcampo stores will undergo restructuring - 34 standard supermarkets and three hypermarkets. In Castilla y León, 44 stores will be affected, including outlets in Burgos, León, Palencia, Valladolid and Zamora. Aragon will see 36 impacted supermarkets, mostly in Zaragoza, with others in Teruel and Huesca.

 

Other regions affected include La Rioja, Cantabria, Navarra, Castilla-La Mancha, Galicia, Asturias and the Basque Country.

 

Unions are not taking the news lying down. Fetico, Comisiones Obreras and UGT have all pledged to propose alternatives to reduce the number of layoffs and store closures. They also plan to advocate for employee relocations and higher severance pay for those who do exit the company.

 

Image: Zarateman via Wikimedia Commons