how big retailers are adapting

Thanks to its communication strategy, Leclerc has conquered the majority of the market shares. But other major retail players are stepping up their efforts to stay competitive.

The purchasing power of the French is largely affected by inflation, which reached 5.2% in a year in May, according to INSEE. Prices rise, especially in supermarkets, with an increase of 3.81% in May, all circuits and products combined. A level not reached for 14 years.

To attract customers, large retailers are ramping up their marketing operations and strengthening their communication. Among the winners, Leclerc captured 0.2 points of market share between March and May, for a total of 22.4% established between April 16 and May 15, according to analyst Kantar. Note that Leclerc has positioned itself as a leader in mass distribution since 2018. The group stands out particularly in this period of inflation, thanks in particular to several factors, as Philippe Goetzmann, retail expert explains: “Leclerc covers a large part of France, with 570 hypermarkets. The brand has always claimed to be the cheapest and their mission is the purchasing power of the French. They are very talented in their communication.

Leclerc, pioneer of communication

Cost-price transactions, a fixed price of the baguette or even low-cost electric offers … Michel-Edouard Leclerc, CEO of the group, multiplies the announcements. This “pioneer of communicationtook the top spot on AmazingContent’s ranking of the most influential retail managers. This is “orderly but authentic communication, always in a current or even familiar register, reflecting the image of a leader close to consumers“, Notes the study.

With this strategy,Leclerc has gained four points of market share in a decade“, Underlines Frédéric Valette, director of the Retail department of Kantar. He adds that “the distributor has been very proactive with its units», Which allow you to order your shopping online and collect it directly in the store. “Of all the drive-through expenses, of all the stores combined, Leclerc accounts for nearly half of the sales on this channel“, Observes Frédéric Valette.

Carrefour focuses on proximity, Intermarché on its loyalty card

In front of Leclerc, Carrefour and the Les Mousquetaires group (Intermarché) share the next two places on the podium, respectively with 19.8 and 15.9% of retail sales. If Intermarché gains 0.2% market share, Carrefour loses 0.3% between March and May, despite a significant two-year recovery. “The former leadership of Carrefour believed that unity was not a strategic axis. Today the brand is focusing on digital and its vast network of convenience stores, particularly through delivery applications such as Uber eats Where is it Deliveroo “, Explains Frédéric Valette.

In the first three places are Leclerc, Carrefour and the Les Mousquetaires group, which hold the largest market shares in large-scale distribution. Kantar

On 6 June the brand launched its “tight prices», On 220 products of major brands. The target. the goal, “prices maintainedon essentials such as Lotus toilet paper, Ariel detergent, Carte Noire coffee and Tropicana orange juice. According to distribution agency A3, the number of promotional offers from Carrefour hypermarkets increased by 21.5% from 1uh From January to mid-May 2022, compared to the same period last year.

For his part, Vincent Bronsard, president of Intermarché, last week promoted the loyalty card on BFM Business. This free cardoffers up to 10% discount on some of our brands. There are almost 2000 references such as Paquito, Pâturages or Chabrior“, He said. The more modest are also entitled to a discount of 5% every day. The only condition is to be holders of CAF or MSA and have a family quotient of less than or equal to 850 euros. This offer operates within the limit of 20 euros per month, on all journeys, excluding alcoholic drinks.

Cost prices at Système U and Casino

The U group ranks fourth, with a market share of 11.5% in May, a figure equivalent to March.. To attract consumers, the brand relies primarily on cost-priced products. A measure that System U has offered every week, since the beginning of the Covid-19 emergency, on four fruit and vegetables. This week, for example, the kilo of apricots is 2.59 euros. But Philippe Goetzmann points to a lack of communication: “The group is extremely good in pricing but is not well known enough. He tries.

With a market share of 7.1%, Casino remains stable, gaining only 0.1% between March and May. Like Système U, the group also initiates operations at cost prices. In mid-May, the 400 supermarkets offered to reimburse all euros or cents spent by customers, which exceed the cost price of fruit and vegetables, in vouchers. A “petrol operation at € 0.85it is also organized every weekend, up to a maximum of 50 liters of fuel. In addition to these operations, the group offers a Casino Max subscription, which allows customers to benefit from a 10% reduction per month on the entire store. From 3 May, a 10 euro per month pass is offered at the price of three euro for students and seniors.

Lidl restores its image

Lidl, with a market share of 7.8% and a loss of 0.2% in two months, “still proceeding very clearly and doing a lot of publicityobserves Frédéric Valette. Unlike its competitors, the group focuses on another strategy: the renovation of its stores. Gone are the beige tiles on the floor and the aged look of the shelves, giving way to the modern and bright Lidl. The brand has thus straightened out the way its stores are managed to offer a better welcome to customers.

For several years, Lidl has been renovating its stores to offer a better welcome to its customers. Twitter

Lidl’s historic slogan promises “theThe true price of good things»Proposing a few national brands, in favor of distributor brands. “Lidl is frequented by over 60% of French families which is high. But the level of customer retention is still quite low, so Lidl has significant development potential, especially with its Lidl Plus app.», Adds Frédéric Valette.

Until July 31, the German distributor is proposing an operation, called “the push that’s worth it“. Specifically, once a month, customers with Lidl Plus will be able to benefit from a 5% discount coupon, valid on all purchases, starting from a purchase of 50 euros. The coupon will be displayed automatically on July 1 and August 1. All you have to do is activate it one day of the month and scan it when it goes to the cashier.

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