The hard discount market - France

The global Large Food Superstores (GSA) market is experiencing significant growth, with an estimated value of US$5,600 billion in 2020 and a forecasted CAGR of 4% to reach US$7,369 billion by 2027. This expansion is driven by rapid growth in emerging markets, particularly China, as well as increased consumer spending power. Supermarkets, which are preferred by 75% of French consumers for their food shopping, are gradually gaining market share over hypermarkets.

The hard discount sector, led by Lidl and Aldi, accounts for just under 11% of the market in France, reflecting the consumer trend towards value and quality over low prices alone. The French GSA market is also witnessing a tendency towards consolidation, with industry giants acquiring smaller hard discount stores. The trend towards upmarket and digital consumer preferences is reshaping the retail landscape, as seen in initiatives like Lidl's modernization and move towards a "soft discount" model.

Despite the decline in hypermarket dominance, which accounts for more than 58% of market share, the market dynamic continues to evolve with consumer habits, keeping supermarkets as key players in the food retail sector.

Main Trends Shaping Food Retail Demand in the French Market

The French food retail market, specifically the segment of Large Food Superstores (GSA), has been undergoing a series of transformative trends. Despite a 0.4% decline in the turnover of food superstores , there remains a strong consumer preference for supermarkets, which collectively hold a significant 53% of the market share as of the same year. Supermarkets are gaining ground at the expense of hypermarkets; consumers are increasingly drawn to the convenience and the perceived better adaptation they offer in line with changing shopping behaviors. A survey revealed that about half of the households considered their monthly food budget, which falls between roughly 200 to 500 euros, as excessively high. Nevertheless, while the budget for food remains mostly stable, with 39% of respondents not increasing their budget, nearly half of the consumers raised it, underscoring the essentiality of food consumption.

Meanwhile, the hard discount sector, dominated mainly by Lidl and Aldi, accounts for just under 11% of the GSA market. When choosing where to shop, French consumers prioritize factors like the quality-to-price ratio (52%), availability of the needed product (50%), store location (45%), and the presence of high-quality fresh products (45%). Interestingly, price alone is no longer the sole determinant as consumers become more discerning. Emerging trends also point to a demand for shopping comfort, healthiness, and ethical considerations. Consumers are shifting towards organic, eco-responsible products with clear information transparency. Fresh, local, and minimally processed foods attract greater interest, with organic products experiencing a 14% increase in purchase frequency. These preferences are even more pronounced among younger consumers, who are also driven by the convenience and time-efficiency of ready-to-eat meals.

The hard discount market, which witnessed a decline with the closure of 25% of discount stores between 2014 and mid-2019, sees a battle for dominance mainly between Lidl, with plans to open additional stores, and Aldi, which has recently acquired a large number of Leader Price stores. This consolidation denotes a trend towards a more concentrated market structure. Recognizing the stiff competition from established retailers, hard-discount stores such as Lidl embarked on a strategic pivot towards a "smart discount" model in 2012. This strategy entailed modernizing stores, offering higher-quality goods including fresh produce and private-label brands, enhancing shopping comfort, investing in social media branding, and maintaining

Major Contenders in the French Food Retail Landscape

• Traditional Supermarket and Hypermarket Giants Within France's dynamic food retail sector, certain established giants have carved out substantial market shares through a variety of retail formats, maintaining a strong presence throughout the country. Among these, renowned groups such as Leclerc and Carrefour stand out, with their diverse array of hypermarkets and supermarkets catering to every need of the French consumer. Leclerc's strategic emphasis on private label brands geared towards affordability, local products, and organic offerings has solidified its position in the market.
• The Evolution of Hard Discounters The hard discount segment in France has undergone a remarkable transformation, spearheaded by two German heavyweights: Lidl and Aldi. These brands initially captured market interest with their no-frills, cost-effective approach offering a limited range of private label products. In the face of increased competition and shifting consumer preferences, Lidl initiated a significant shift in 2012 with its turn towards soft-discount or smart-discount retailing. The revamp of Lidl's image included enhanced store aesthetics and an upgraded product range featuring fresh, bio, and high-quality items. Lidl's investment in marketing and the clever use of social media campaigns, such as the limited-edition Lidl sneakers, have amplified its appeal in the public eye, resulting in an enriched customer experience and elevated position in the market.
• Consolidation and Growth Plans As the traditional hard discount model faces challenges, consolidation has become a theme in the sector. The Casino group, which previously owned the Leader Price brand, made a strategic move by selling a significant part of the business to Aldi, enabling the latter to expand its footprint and intensify competition against Lidl. Meanwhile, the Les Mousquetaires Group's hard discount brand Netto is not backing down amid these changes, with ambitious plans to establish 500 new stores, potentially disrupting the duopoly trend between Lidl and Aldi.
• New Entrants and Niche Players Specialist brands are also notable participants in the market, with Picard focusing on frozen goods and Biocoop specializing in organic offerings. Both have witnessed growth in their respective niches, responding to the evolving demands for convenience and sustainable, healthy food options. In addition to these, the Carrefour group has launched its own hard discount venture, Supeco, which has already made its mark in Spain and is now making inroads into the French market. 

Informations

• Nombre de pages : 30 pages
• Format : Version digitale et PDF
• Dernière mise à jour : 29/02/2024

Sommaire et extraits

Liste des graphiques

• Taille du marché mondial des la grande distribution alimentaire
• Classement des plus importants groupes de grande distribution selon leur chiffre d'affaires
• Principaux détaillants discounts dans le monde par ventes de produits d'épicerie
• Parts de marchés des distributeurs alimentaires
• Evolution du chiffre d'affaires des hypermarchés et supermarchés
• Nombre de magasins discount en France
• Fréquence à laquelle se rendent les français en supermarché
• Montant mensuel moyen budget alimentation par foyer français
• Les lieux privilégiés par les français pour leurs courses alimentaires
• Les critères de choix d'une enseigne alimentaire
• Les qualités des enseignes de hard discount
• Fréquentation des enseignes de hard discount
• Sentiment de fidélité à l'égard des marques de hard discount
• Catégories de produits les plus achetées dans ces enseignes
• Top 10 des enseignes discount les plus connues
• Top 10 des enseignes les plus fréquentées
• Conséquences de l'inflation sur le comportement de consommation des français
• Evolution du taux d'inflation
• Avec l'inflation, privilégiez vous les magasins alimentaires discount?
• Fréquentation des discounters depuis la hausse des prix
• Parts de marchés en valeur des principales GSA en France
• Effectifs salariés de la grande distribution
• Evolution du nombre de magasins hard discount
• Nombre de magasins alimentaires par format
• Répartition des ventes des GSA
• Evolution du chiffre d'affaires d'Action en France
• Evolution du chiffre d'affaires de l'enseigne Normal
• Evolution du chiffre d'affaires de B&M (Babou jusqu'à fin 2018)
• Evolution du chiffre d'affaires de Gifi
• Les raisons de se rendre dans les enseignes de discount non-alimentaires
• Les types de produits achetés dans les enseignes de discount non-alimentaire
• Evolution du chiffre d'affaires des drives en France
• Evolution des parts de marchés de Lidl depuis le nouveau tournant pris en 2012