Auchan, a major French supermarket chain, is facing financial and strategic challenges in both France and Russia. In Russia, the government of Vladimir Putin recently placed the assets of Auchan's local subsidiary under "temporary administration," citing the company's ownership by a "hostile" country supporting Ukraine. This move could lead to the forced sale of assets to Russian companies at very low prices. Economy Minister Roland Lescure has called this a "hostile act" and aims to cancel it. Auchan has operated in Russia since 2002 and employs over 33,000 people across 241 stores. According to Les Echos, the company risks losing between 60 and 70 billion rubles (619 to 722 million euros), as well as a turnover estimated at 3.2 billion euros at the beginning of the war in Ukraine. In France, Auchan is undergoing a major transformation of its supermarket network, announced in November 2025. The company has decided to keep 13 stores under other formats and sell 72 to members of the Mousquetaires Group, which includes Intermarché and Netto. It has also entered exclusive negotiations with Lidl for the sale of 17 stores that had remained without a buyer until now. Starting from October 1st, 164 of its stores will gradually come under the Intermarché or Netto banners, as part of an unprecedented strategic shift. These stores will not be sold, but will now be managed under a franchise model. This marks a significant departure from Auchan's traditional supermarket model, which focuses on smaller stores and daily shopping, as opposed to hypermarkets that offer a wider range of products. Guillaume Darrasse, CEO of Auchan Retail, emphasizes that the franchise model aims to allow Auchan to increase the sales volumes of these supermarkets by 20% before 2029. The operation is combined with other synergistic partnerships already concluded between Auchan and the Mousquetaires: the creation of a joint advertising agency and a purchasing alliance. These partnerships support Auchan's price reduction policy to catch up with the competition. Despite these efforts, Auchan's turnover in France has decreased by 0.5% in 2025, despite an improvement in its profitability. In terms of market share, the operation will benefit Intermarché and Netto, which, at 17.9% today, should reach 19.1%, according to Worldpanel. Auchan's share, which is already the fifth retailer behind E. Leclerc, Carrefour, Intermarché, and Coopérative U, should drop from 8% to 6.2%. The new organization could also imply that some central services of the group end up being overstaffed, according to the unions. A social plan announced at the end of 2024, which aimed to eliminate nearly 2,400 jobs, was invalidated in January by a decision of the administrative court of Douai, against which Auchan has appealed to the Council of State. The Russian setback confirms a lack of anticipation, according to a member of the Mulliez family, who stated, "We knew the possibility but we did not see it coming." Unlike many other French and international groups that have gradually withdrawn from Russia since the war in Ukraine, Auchan had decided to stay, operating its third largest subsidiary after France and Spain.