Alcampo has announced that it will close 25 of its supermarkets in Spain and begin a collective redundancy process that will result in the loss of 710 jobs. This represents around 3% of the company’s workforce in Spain, which currently stands at more than 23,300 employees.

The closures, announced on Thursday, will affect stores in 13 regions across the country, including Madrid, Valencia, Andalucía, La Rioja, Cantabria, Navarra, Castilla-La Mancha, Castilla y León, Galicia, Aragón, Asturias, and the Basque Country.

The company, which operates in France under the name Auchan, confirmed that both supermarkets and hypermarkets are included in the closure plan. However, it has not yet provided a list of the specific locations set to be shut down.

According to the Spanish trade union CCOO, a preliminary list of affected sites has been received, but no detailed information about the closures has been disclosed. A union spokesperson stated that the next step is to establish a negotiating table to discuss the terms of the collective redundancies.

The union expressed concern about the situation, highlighting that this is a new and challenging development for Alcampo. Their focus, they said, will be on protecting jobs and ensuring that, if redundancies do occur, workers are offered the best possible exit terms.

In a press release, Alcampo said the decision to close the stores is part of a broader effort to boost operational efficiency and align with its commercial strategy. The company noted that in 2023, it acquired 224 supermarkets, including many from the DIA group in a deal worth €267 million.

Following an assessment, Alcampo found that some of these stores were not suitable due to location issues, lack of alignment with the brand’s model, or poor performance.

The company explained that achieving sustainable growth requires a transformation plan, which includes a staff adjustment to ensure profitability at all stores. While acknowledging that the decision is difficult, Alcampo described it as necessary and responsible.

Despite the store closures and job cuts, Alcampo emphasised its ongoing commitment to the Spanish market. The company plans to pursue growth through a multi-format and multi-channel approach, focusing on competitive prices, a wide product range, and strong support for both local and national suppliers.