Auchan faces backlash from trade groups in Senegal

Jun 28, 2018

Auchan Mbour
“Auchan Dégage” has become a rallying cry among local trader groups, trade unionists and civil society activists, who claim large supermarkets stifle competition, bankrupt traders and are bad for the economy.

In an echo of the “Croire au Cameroun” political campaign that vowed to fight French supermarket chain Carrefour, Auchan’s expansion in Senegal has become a political touchpoint. Secretary General of  the trade union Unacois / Jappo (Union Nationale des Commerçants et Industriels du Sénégal), Modou Diop has been quoted in the Senegalese media fulminating against foreign invaders and their impact on local traders.

The group is lobbying Senegalese ministers to curb the expansion of international supermarket chains, alleging that they stifle competition, bankrupt traders and are bad for the health of the economy. As Trendtype has noted, Senegal has become a key battleground for supermarkets. Offering political stability and a growing middle class, Senegal has emerged as an alternative to the more obvious francophone markets of Cote d’Ivoire and Cameroon.

The major shift came in November 2017, when Auchan acquired the Citydia chain of supermarkets. Auchan instantly became the largest supermarket chain in the country, eclipsing the more established Casino chain, operated by Mercure International. Carrefour and South Africa’s Massmart are also both known to be considering entry into more markets in francophone West Africa, which could include Senegal.

The main problem for the anti-supermarket lobby is that Senegalese consumers want to shop in supermarkets. And the supermarket chains understand that they can attract repeat custom from lower income consumers by using buying power to offer staples at cheap prices, while attracting middle and upper income consumers with improved product choice and quality. At the moment there is little appetite among Senegalese government ministers to interfere in the growth of the supermarket sector and for now Auchan – for which Senegal is its most important sub Saharan African market – appears relatively unchallenged.

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