The hard discount market - France

The hard discount concept, characterized by medium-sized stores focusing on food products at reduced prices, expanded significantly in France from the 1990s onwards. originally introduced in the country by German chains Lidl and Aldi, it was later adopted by major French retailers such as Netto and Leader Price. However, since the 2010s, this model has encountered challenges on the French market. Its evolution has been so marked that it's questionable whether it's still appropriate to use the term "hard " to describe it. Nowadays, it's not uncommon to hear the terms SDMP (supermarkets with predominantly own-brand brands) or EDMP (retailers with predominantly their own-brand brands) used to describe these brands. The global supermarket market is dynamic, and is expected to grow at a CAGR of 4.5% between 2022 and 2030. What's more, the Schwarz Group is the world's leading discount retailer. As for the French food retail market, it operates as an Oligopoly, with 3 major groups(E.Leclerc, Carrefour and Les Mousquetaires) sharing nearly 60% of total sales. In France, the discount market is varied and made up of many players, both food and non-food discounters . by way of illustration, according to an EY study, in 2023, the French people's favorite discount chain will be Action. The market is therefore very dynamic and very popular with the French, and even more so since inflation. Discount chains have been seeking to modernize over the last ten years to attract more and more customers. The arrival of a new range of first-price products on the shelves in 2024 could continue to attract new customers.