In this study :

Summary

The global food retail market, estimated at $11,324.4 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 3% from 2022 to 2030. Dominated by American companies, with Walmart at the forefront, the market is led by three top US retailers, while Germany's Schwarz Group, including Lidl, ranks fourth globally. In France, the food retail market, part of this global industry, has been identified as oligopolistic, with key players such as E.Leclerc, Carrefour, and Les Mousquetaires collectively holding nearly 60% of the market share as of 2023. French hypermarkets and supermarkets accounted for over 60% of market sales by 2023, with hypermarkets alone contributing significantly due to their extensive product range. The sector has witnessed notable growth since 2019, with sales increasing by more than €8 billion. Despite this growth and the dominance of hypermarkets, recent years have also seen a rise in prominence and market share of the SDMPs (discount stores), such as Lidl and Aldi..**Rapid Transformation in the French Food Retail Market: Adapting to Changing Consumer Preferences** As we delve into the French food retail market, we observe a landscape that has been significantly shaped by evolving consumer habits and prevailing economic conditions. The market responds to an essential need – food, making every individual a customer with strong demand. Yet, consumer tendencies are not stagnant; they fluctuate in response to economic climates and personal preferences. The frequency of supermarket visits in France sees the majority of consumers opting for weekly trips. As for their food budget, French households show a relative consistency, despite a dip in spending in 2015 followed by a resurgence that is projected to persist through 2023. When selecting where to purchase food, a sizeable segment of about 20% chooses to shop at supermarket chains specializing in own-brand goods, indicating a shift from more traditional shopping avenues. The pressure of inflation, which has seen a steep increase to 5.2% in 2022 before a slight dip in 2023, has undeniably influenced the behavior of even the most affluent French shoppers. A downward trend in purchasing higher-priced food items is evident, with indications that consumers plan to further tighten their belts come 2024. Notably, the market has seen recent transformations through significant acquisitions that have restructured its very fabric. The potential takeover of several Casino stores by Intermarché and Auchan sets the stage for changes in market share distributions but reflects an ongoing oligopoly with a few major players dominating the scene. When we consider the sheer number of operating stores, we find that convenience stores abound, with their smaller size making them more manageable to establish compared to the expansive hypermarkets. However, despite their prevalence, it's the hypermarkets that continue to dominate in terms of sales area. The market's workforce data, from 2006 to 2022, shows a steady increase, only to experience a slight reduction, which could be attributed to advances in automation and the rise of vending machines. It's worth noting that a substantial 89% of these employees are on permanent contracts, with women making up 58% of the workforce. An intriguing shift is observed in brand consumption patterns, with private labels witnessing year-on-year volume growth while national brands exhibit a decline. This is paralleled by a decrease in demand for organic products, likely due to budget constraints brought on by inflation. Sales of organic items surged between 2017 and 2020 but have seen a downturn since. The market's value chain reflects a sequence from producers.### Prominent Forces Shaping the French Food Retail Landscape Within the dynamic arena of the French food retail market, a select group of influential companies stand out, delineating the contours of the industry's oligopolistic structure. Dominating the field with their profound market presence, these titans of commerce are integral in catering to the nation's sustenance needs, illustrating the diversity of player segmentation within the market. #### The Cooperatives: Sustaining the Independent Spirit - **E.Leclerc:** Serving as a beacon of independent retail cooperative success, E.Leclerc is synonymous with value for consumers, fostering a strong community network of autonomously owned stores. This coalition enables members to harness collective power for purchasing and branding while advocating consumer interests. - **Les Mousquetaires:** Taking pride in their cooperative ethos, the Mousquetaires, with Intermarché at their vanguard, strike a balance between robustness and versatility across supermarkets and hypermarkets alike, positioning themselves as a steadfast provider in the French food retail sector. - **Système U:** As a conglomerate of independent retailers, Système U epitomizes resilience, fostering local patronage through its U brand of stores, from Super U supermarkets to the expansive Hyper U hypermarkets. #### The Integrated Chains: Centralization for Efficiency - **Auchan Retail:** Striding ahead with its integrated store network, Auchan Retail aligns its expansive hypermarkets under a centralized strategy for operational efficacy, bringing an array of products under one roof. - **Carrefour:** A juggernaut within the integrated chain segment, Carrefour harnesses its substantial network of hypermarkets, supermarkets, and convenience stores to deliver a ubiquitous shopping experience. - **Casino Group:** A diverse mix of outlets including the ubiquitous Casino supermarkets, the urban-centric Franprix, and the upscale Monoprix, ensures an adapted approach to a variety of consumer needs, thus anchoring the Casino Group firmly within the industry. #### The SDMPs: Revolutionizing Affordability - **Lidl and Aldi:** Known for their cost-effective business models and a no-frills shopping environment, Lidl and Aldi stand at the forefront of the Supermarché à Dominante Marques Propres (SDMP) category. They consistently disrupt the market with their emphasis on affordability, redefining value in food retail. Far from being a monolithic entity, the French food retail market is a tapestry woven by these diverse entities, each contributing to an overarching
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  • Last update : 22/01/2024
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Summary and extracts

1 Market overview

1.1 Definition and presentation

With the pandemic in 2020, the food retail market had undergone significant changes:(e.g. the development of proximity, the boom in organic produce, digitalization of consumer habits). The war in Ukraine then triggered a general widespread price increases which led consumers to change their consumption habits. Food retailers must therefore adapt their strategies to changing consumer expectations. In this study, we'll look at the changing consumer habits of the French.

Food retailing refers to the self-service retailing of food products. The term "supermarket" is used in contrast to the term "small independent retailer" our study will focus on food retail groups and not on small independent food retailers.

Various types of outlet will be studied in the course of the study:

  • Hypermarkets
  • Supermarkets
  • Convenience stores
  • Drives

The global supermarket market is dominated by three American players, led by world leader Walmart. This market is growing, with a forecast annual compound growth tannual compound growth rate of 3% from 2022 to 2030.

In France, the supermarket market is an oligopolistic oligopolistic market with few suppliers sharing the bulk of the market. The main food retail groups are E.Leclerc (23.5% MARKET SHARE), Carrefour (19.8% PDM), Les Mousquetaires (Intermarché) (16.1% PDM), Auchan, Groupe U and Casino. SDMP (Supermarché à Dominante Marques Propres), formerly known as hard discounters, such as Lidl and Aldi, which have been gaining market share in recent years. The retail landscape is changing, with the takeover of some stores by others with the takeover of certain stores by other banners (Intermarché and Auchan take over Casino stores; Carrefour acquires Cora and Match)

1.2 A global market dominated by major US retailers

In ****, global sales in the food retail market, including groceries, are estimated at **,***.* billion dollars. This market is expected to grow steadily, with a compound annual growth rate of *% from **** to ****.[***]

Ranking of the largest supermarket groups by sales figures World, ****, in billions of euros Source: ****

In terms of sales, the ...

1.3 A national oligopolistic market

The food retail market is worth around *** billion euros in France. Some **,*** French communes have a food store.

The French market is oligopolistic marketa few major groups share the bulk of the market:

Market shares of food retailers France, **** (***), in % and points Source: ****

E.Leclerc remains the market leader, with market ...

2 Demand analysis

2.1 French household food consumption habits

Food retailing is a market that responds to a primary need primary need need: food. We can therefore say that all individuals are customers in this market, and that demand is strong. However, consumer habits vary and evolve according to customers and economic conditions.

Frequency with which the French visit supermarkets France, ...

2.2 The effects of inflation on French consumer behavior

Inflation rate trend France, ****-****, %, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

Inflation will rise sharply in ****, to *.*%. **** was also a year of high inflation, despite a slight decrease compared to ****. This inflation has had a major impact on food prices in supermarkets.

Impact of inflation on French consumer behavior France, ****, %, %, % Source: ****

With the rise in food ...

2.3 Private label consumption up, national brands down

Sales volume growth in FLS CPG France, ****-****, % Source: ****

Price rises seem to have had a positive impact on private labels, which are enjoying volume performance year-on-year. National brands only posted negative trends. Over P** ****, in July ****, the gap between private labels and national brands is greater than over all previous ...

2.4 Declining demand for organic products

As explained above, inflation has had an impact on French consumer habits, with a decline in the consumption of certain products and a move downmarket in the range of products purchased. These changes in consumption have had an impact on sales of organic products.

According to the barometer of organic products ...

3 Market structure

3.1 Value chain

In the value chain,

The producer supplies raw materials after negotiating purchasing conditions with the wholesaler or central purchasing agency, while complying with strict standards defined in specifications. The wholesaler, where applicable, takes delivery of the producer's goods, negotiates with the chain's buying groups, and delivers to the warehouses. The buying ...

3.2 Number of companies and number of employees

Number of supermarket food stores :

Number of food stores by format France, ****, by value Source: ****

As the graph shows, the majority of our stores are convenience stores stores in France. What's more, the hypermarket format is the least represented in France.

However, the hypermarket is much larger in terms of sales ...

3.3 Acquisitions that are changing the landscape of French retailing

Over the past few months, the structure of the food retail market has undergone major changes, with the takeover of certain stores by different banners: Intermarché and Auchan are set to acquire former Casino stores, while Carrefour is set to acquire the Cora and Match banners in France.

Acquisition of Casino ...

4 Offer analysis

4.1 Offer typology

Customers can choose from a wide range of products, which can be classified under different brands and product ranges.

Different brand forms :

Different product ranges:

We can also classify assortment products under different product ranges:

Classic products Premium products Organic and plant-based products Local, original products

4.2 Rationalization of assortment

Impacted by inflation and changing consumer habits, retailers are taking strategic strategic decisions in the management of their departments. They opt for reducing the number of references in their stores. The aim is to boost economic efficiency, while meeting the expectations of consumers who are now ready to sacrifice diversity for ...

4.3 Significant digitalization of our offering

The mass retail sector is undergoing massive digitalization, which began a decade ago but was accelerated by the Covid crisis and various confinements. E-commerce, drive and delivery services, click and collect illustrate the significant digitalization of the retail sector.

The Covid-** crisis highlighted the need to develop omnichannel omnichannel strategies to ...

5 Regulations

5.1 Law of November 17, 2023 to regulate commercial negotiations

Every year, commercial negotiations take place between manufacturers and distributors. The aim of these negotiations is to dhe aim of these negotiations is to set new selling prices for mass-market products. Usually, commercial negotiations take place betweenecember * and March *. For the **** negotiations, supermarket professionals are faced with a change in dates, ...

5.2 Anti-waste law for a circular economy (Loi AGEC)

The mass retail sector is impacted by the AGEC law in several ways: lfood waste with unsold goods and the use of plastic with the reduction of single-use plastic packaging.

Management of unsold goods :

The mass retail sector is responsible for almost **% of food waste in France. ** million tonnes of edible ...

5.3 Loi Descrozaille

The Descrozaille law (***).

As soon as it comes into force, promotions for non-food products may not exceed exceed **%. Initially presented as a measure to protect manufacturers in their negotiations with supermarkets, this law has not met with unanimous approval french people rely heavily on promotions to reduce their spending.

Although our ...

6 Positioning the players

6.1 Player segmentation

The different types of sales channel in food retailing:

For example, Intermarché, a group of independent retailers, includes supermarkets, hypermarkets and convenience stores. Here's a table summarizing the different types of sales outlets:

It's important to note that SDMPs (***) are not included in this classification. In concrete terms, we're not talking ...

  • E.Leclerc
  • Les Mousquetaires Groupement
  • Système U
  • Carrefour France
  • Lidl France
  • Aldi France
  • Auchan Retail
  • Casino France

List of charts

  • How often do French people go to the supermarket?
  • Frequency with which French people visit hypermarkets
  • Average monthly food budget per French household
  • Where the French shop for their groceries
  • Answer to the question "in the future, if you had to keep just one type of food store, would it be...?"
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Latest news

Growth for Système U via central purchasing bodies in Europe - 16/02/2024
  • Système U was founded 130 years ago.
  • Today, the cooperative has 1,726 stores.
  • In 2023, the penetration rate among French households was 41.3%, with an average shopping basket of 41 euros.
  • Système U has a market share of 11.8%.
  • Leaders Leclerc and Carrefour have over 20% market share.
  • In 2023, Système U posted sales of 26 billion euros, up 8.4%.
  • The online site CoursesU.com generated sales of 1.2 billion euros, up 14%.
  • By 2023, the network will have 57 new U stores.
  • The Group also has 132 stores outside mainland France, including 9 new ones in Africa.
  • The small convenience stores, U Express and Utile, are also expanding in France, and will soon exceed a thousand units.
Système U: 8.4% sales growth by 2023 - 15/02/2024
  • - Sales growth excluding fuel in 2023: +8.4%
  • - Year-on-year increase in market share: +0.2 points
  • - Number of store openings in one year: 21
  • - Number of new customers in one year: 36
  • - Sales incl. VAT and fuel in one year: 33.18 billion euros (+7.2%)
  • - Sales incl. VAT excl. fuel in one year: 25.89 billion euros (+8.4%)
  • - Details of sales area extensions: - 21 new stores - 36 new stores - 2 transfers - 35 extensions.
Lidl France maps out its logistics future - 28/10/2023
  • The company has opened platforms in Gondreville (54) and Saint-Augustin (62), with the next one planned for Châtelaudren-Plouagat (22)
  • Investment in the 63500 m² Gondreville platform: 100 million euros
  • This site employs 320 people
  • Other new platforms are planned for Châtelaudren-Plouagat (22) in 2024, Ablis (78) in 2025, and Pardies (64) in 2026
  • The Lidl network in France comprises 25 platforms, 23 of which have been renovated, expanded or relocated over the past decade.
Michel Biero to head Lidl France - 19/09/2023

At the end of August, the brand boasted almost 1,600 stores and 48,000 employees in France

David Guilluy (Auchan Supermarkets): "Our ambition is to double the number of stores through franchising" - 31/07/2023
  • 274 stores by end 2022, of which 235 integrated
  • 2% market share
  • Renovation plans for around 200 of the 270 stores
  • Sales growth of 2% by 2022, to 2.7 billion euros
  • Objective of doubling the number of stores through franchising, to more than 500 supermarkets within the next ten years.
Leclerc to grow strongly in 2022, driven by inflation - 17/04/2023
  • E.Leclerc sales up 8.5% including fuel in 2022.
  • E.Leclerc sales in 2022: 43.9 billion euros excluding fuel and 55.6 billion euros including fuel.
  • E.Leclerc is France's leading food retailer
  • E.Leclerc has 544 members and 734 stores.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

E.Leclerc
Les Mousquetaires Groupement
Système U
Carrefour France
Lidl France
Aldi France
Auchan Retail
Casino France

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