Thanks to his communication strategy, Leclerc won a majority of the market shares. But the other major retail players are stepping up their efforts to stay competitive.
The purchasing power of the French is largely influenced by inflation, which reached 5.2% year-on-year according to INSEE in May, according to INSEE. Prices are rising, especially in supermarkets, with an increase of 3.81% in May, all circuits and products combined. A level that has not been reached for 14 years.
In order to attract customers, major retailers carry out their marketing activities and strengthen their communication. Among the winners, Leclerc gained 0.3 point market share between May 2021 and May 2022, for a total of 22.4% between April 16 and May 15, according to analyst Kantar. Note that since 2018 Leclerc has positioned itself as a leader in mass distribution. The group stands out especially in this period of inflation, in particular thanks to several factors, as explained by Philippe Goetzmann, retail expert: “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.†
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Leclerc, communications pioneer
Operations at cost, fixed price of the baguette or even cheap electricity offers… Michel-Edouard Leclerc, CEO of the group, multiplies the announcements. This one “communication pioneertook first place in AmazingContent’s most influential retail executives ranking. That is “neat but authentic communication, always in an up-to-date or even trusted register, which reflects the image of a leader close to the consumerthe study notes.
With this strategy,Leclerc has achieved four market share points in ten years“, emphasizes Frédéric Valette, director of the retail department of Kantar. He adds that “the distributor has been very proactive with its drives», with which you can order your groceries online and pick them up directly in the store. †Of all drive-through expenses, all stores together, Leclerc accounts for almost half of the turnover on this channelFrédéric Valette notes.
Carrefour relies on proximity, Intermarché on its loyalty card
Faced with Leclerc, Carrefour and the group Les Mousquetaires (Intermarché) share the next two places on the podium, with 19.8 and 15.9% of retail sales respectively. If Intermarché loses 0.4% market share, Carrefour gains 0.3% between May 2021 and May 2022, despite a significant recovery over two years. †The former management of Carrefour did not consider the drive a strategic axis. Today, the brand relies on digital and its extensive network of convenience stores, particularly through delivery applications such as: Uber Eats Where Deliveroo “, specifies Frédéric Valette.
On June 6, the brand launched its “tight prices», of 220 products from major brands. The target, “prices heldon basic needs such as Lotus toilet paper, Ariel washing powder, Carte Noire coffee and Tropicana orange juice. According to the distribution agency A3, the number of promotional offers from the Carrefour hypermarkets has increased by 21.5% from 1er 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 card, free,offers up to 10% off some of our brands. It concerns almost 2000 references such as Paquito, Pâturages or Chabrior“, he said. Even the most modest are entitled to a 5% discount per day. The only condition is that you are a CAF or MSA recipient and have a family quotient of less than or equal to 850 euros. This offer is valid within the limit from 20 euros per month, on all races, with the exception of alcoholic drinks.
Cost prices at Système U and Casino
The U-Group comes in fourth place, with a market share of 11.5% in May, a figure close to that of May 2021, at 11.6%. To attract consumers, the brand mainly relies on products at cost prices. A measure that System U has been offering every week on four fruits and vegetables since the start of the Covid-19 crisis. This week, for example, the kilo of apricots stands at 2.59 euros. But Philippe Goetzmann points to a lack of communication: “The group is extremely good at price positioning, but not enough is known. He tries.†
With a 7.1% market share, Casino will remain stable between 2021 and 2022. Like System U, the group also sets up operations at cost. In mid-May, the 400 supermarkets offered to refund in vouchers all euros or cents spent by customers that exceed the cost of fruit and vegetables. A “fuel consumption at 0.85 eurosis also organized every weekend, within the limit of a maximum of 50 liters of fuel. In addition to these operations, the group offers a Casino Max subscription, which allows customers to take advantage of a 10% discount per month on the entire store. Since May 3, the subscription of 10 euros per month is offered at the price of three euros for students and seniors.
Lidl restores its image
Lidl, with 7.8% market share and 0.2% loss in one year”,still progressing very clearly and advertising a lotnotes Frédéric Valette. Unlike its competitors, the group opts for a different strategy: the renovation of its stores. Gone are the beige tiles on the floor and the outdated look of the shelves, making way for the modern and bright Lidl. So the brand has straightened out the way its stores are run to better welcome its customers.
Lidl’s historic slogan promises “thethe real price of good things» by offering few national brands in favor of distributor brands. †Lidl is frequented by more than 60% of French households, which is high. But the level of customer loyalty 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 offers an operation called “the boost it’s worthSpecifically, with Lidl Plus, customers can take advantage of a 5% discount coupon once a month, valid on all their purchases, from a purchase of 50 euros. The coupon will be displayed automatically on July 1 and August 1. All you have to do is All you need to do is activate it one day a month and scan it when it goes to checkout.
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