Supermarkets in France

PROSPECTS

Retailers look to restructuring strategy through the opening of smaller proximity outlets to compete with convenience stores

Following a year of stagnation in terms of expansion, supermarket operators continued to explore a number of options to address changing consumer demand in 2019, which had more adversely impacted hypermarkets. This resulted in a number of chains closing non-performing stores, including Auchan, Carrefour and Casino Guichard-Perrachon to boost their financial positions.

“Deconsumption” trend amongst the French is resulting in quality over quantity

A “deconsumption” trend was observed towards the end of the review period in France, as consumers increasingly looked at the quality of the food they purchased, choosing to buy higher quality products which supported value sales, but reduced the overall quantity of their shopping. They are increasingly adopting a more ethical approach to purchasing, preferring bio, organic and sustainable options, produced by small to medium-sized local manufacturers.

More positive outlook for supermarkets over forecast period, benefitting from owners switching focus away from large hypermarkets

The outlook for supermarkets compared to hypermarkets is predicted to be more positive over the forecast period, as many of the stores in both channels are concentrated amongst the same owners and therefore supermarkets will benefit from the declining share of hypermarkets through increased investments at the expense of the latter’s cost reductions. Therefore, the number of supermarkets is set to marginally improve as many players relocate or build new stores to be closer to more accessible areas and reach their target audience, offering greater competition to convenience stores.

COMPETITIVE LANDSCAPE

ITM Entreprises retains leadership, with increasing focus on developing healthy private label lines

ITM Entreprises SA retained its leadership of supermarkets in value share terms. Following a period of expanding its network for both banners Intermarché and Intermarché Contact, the retailer reduced a number of stores under the latter while continuing to add to the main Intermarché supermarket, and expanding its selling space.

Restructuring strategy for Auchan and Casino Guichard-Perrachon

A number of supermarket players continued to restructure their networks towards the end of the review period due to increasing pressure from smaller format stores such as convenience stores, which benefitted from proximity to local consumers. Auchan completed its rebranding of Simply Markets with all of its stores now under the main Auchan banner in 2017.

Monoprix partners Belgian company to offer foodservice space in Passy

Despite reducing its overall network size in 2019, Casino Guichard-Perrachon continued to explore ways of attracting consumers with its banner Monoprix in Passy, entering into a partnership with Belgian specialist Foodmaker. The store has incorporated a foodservice area to offer natural prepared food which addresses increasing consumer demand for healthier options, while offering them greater convenience; the foodservice concept allows customers to either sit down or take away their orders for on-the-go consumption.

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