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    Grocery Retail Paris France 9-24-2012

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    Parag Shetty
    In 2011, the five major grocery retailers in France controlled 60% of the market and continued investing in small format stores like supermarkets and convenience stores. Consumers preferred these types of stores and were willing to purchase private label products if prices were comparable to brand names. Hypermarkets remained the largest format in value at 42% of sales despite having the fewest stores. Consumers paid attention to quality and lower prices, driving growth in discounters, supermarkets, and private label products.

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    Grocery Retail Paris France 9-24-2012

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    Parag Shetty
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    In 2011, the five major grocery retailers in France controlled 60% of the market and continued investing in small format stores like supermarkets and convenience stores. Consumers preferred these types of stores and were willing to purchase private label products if prices were comparable to brand names. Hypermarkets remained the largest format in value at 42% of sales despite having the fewest stores. Consumers paid attention to quality and lower prices, driving growth in discounters, supermarkets, and private label products.

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    Grocery Retail Paris France 9-24-2012

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    In 2011, the five major grocery retailers in France controlled 60% of the market and continued investing in small format stores like supermarkets and convenience stores. Consumers preferred these types of stores and were willing to purchase private label products if prices were comparable to brand names. Hypermarkets remained the largest format in value at 42% of sales despite having the fewest stores. Consumers paid attention to quality and lower prices, driving growth in discounters, supermarkets, and private label products.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    64 views4 pages

    Grocery Retail Paris France 9-24-2012

    Uploaded by

    Parag Shetty
    In 2011, the five major grocery retailers in France controlled 60% of the market and continued investing in small format stores like supermarkets and convenience stores. Consumers preferred these types of stores and were willing to purchase private label products if prices were comparable to brand names. Hypermarkets remained the largest format in value at 42% of sales despite having the fewest stores. Consumers paid attention to quality and lower prices, driving growth in discounters, supermarkets, and private label products.

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    of 4

    THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY

    USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT


    POLICY

    Voluntary

    - Public

    Date: 9/24/2012
    GAIN Report Number: FR9116

    France
    Post: Paris

    Grocery Retail
    Report Categories:
    Retail Foods
    Approved By:
    Lashonda McLeod
    Prepared By:
    Laurent J. Journo
    Report Highlights:
    In 2011, the grocery retail sector reached $282 billion in sales. Five major players controlled 60 percent
    of the overall value sales, and are investing in small format stores. Consumers are paying attention to
    obtaining good, quality food products for lower prices, and have been willing to purchase private label
    products rather than brand name ones, as long as the quality is comparable.

    General Information:
    Average exchange rate for calendar year 2011:
    USD 1 = 0.72 Euros
    Source: International Monetary Fund

    SECTION I. MARKET OVERVIEW


    In 2011, the major grocery retailers continued to invest in small format stores, such as supermarkets and
    convenience stores. Auchan started operating with a convenience store format with its new A2pas
    outlets, while Carrefour invested in new Carrefour City and Carrefour Express outlets. This trend was
    largely due to changes in the way consumers shopped for grocery products: Most perceived this task as
    boring and prefer not to waste more time than necessary shopping; and furthermore, in urban areas there
    were a large number of one or two person households, which resulted in smaller baskets of grocery
    purchases. As a consequence, a growing number of consumers avoided large grocery retailer formats
    (hypermarkets) and opted to shop in smaller formats near their home.
    In 2011, hypermarkets accounted for 42 percent of the overall sales value of grocery retailers. Despite
    having the lowest number of outlets, they remained the largest retailers in value terms. Hypermarkets
    can offer large range of grocery and non-grocery products as well as a wide range of prices, this is the
    reason families choose this type of retailers.
    Supermarkets and discounters registered 3 percent in value sales growth in 2011. The expansion of
    discounters encouraged hypermarkets and supermarkets to develop their own private label range to
    become more price competitive and this attracted greater numbers of price sensitive consumers to their
    stores.
    Neighborhood/convenience stores declined in value sales in 2011. This was mainly due to a price
    positioning that was higher than other grocery retailing formats, particularly where consumers continued
    to be very worry in their spending. Specialized food stores such as organic stores, benefitted from the
    growing receptiveness to natural and healthy products and registered a 4 percent value sales increase.
    The E-commerce has progressively increased over the years and is likely to continue, as major retailers
    have invested in their own websites.

    SECTION II. MARKET ENTRY


    More than ever, consumers are paying attention to obtaining good, quality food products for lower
    prices. They are also appreciating discounts and lower prices and have been willing to buy private label
    products rather than brand name products. Private label products are becoming better established in
    grocery retailers; therefore, U.S. companies interested in penetrating the French market should consider
    doing so. Price, proximity, and convenience are among the major needs of French consumers, making
    convenience stores quite popular.

    SECTION III. COMPETITION


    About 30 players with retail chains operate in the sector accounting for 80 percent of overall value
    sales. The top five are Carrefour, ITM Enterprises, E. Leclerc, Auchan, and Casino representing 60
    percent of the total markets value sales. The leading players are present in different categories and own
    different outlets. Carrefour is present in all types of modern formats and ITM Enterprises operates in
    hypermarkets, supermarkets, and discounters. In terms of positioning, differences exist: For example,
    Carrefour has several outlets and offers numerous services; its stores are relatively higher price
    positioned in comparison with other competitors such as E. Leclerc. ITM Enterprises focuses on
    accessible prices and has a larger presence in semi-rural parts of France. Auchan has hypermarkets
    located in commercial centers that are surrounded by stores of non-grocery retailers such as Leroy
    Merlin, Boulanger, and Kiabi.

    SECTION IV. BEST PRODUCT PROSPECT


    Major grocery retailers are investing in small format stores in order to adapt to consumers.
    Hypermarkets are expected to be the most valuable category in grocery retail. The marginal economic
    recovery should encourage discounters to expand their outlet network to target the lower purchasing
    power consumers. Discounters performance would likely be inhibited by the development of private
    labels in hyper/supermarkets.
    Independent small grocery retailers will continue to have difficulties competing with cheaper
    supermarkets. Despite the closing of some outlets, these independent small grocers will continue to be
    appreciated for the advantages they offer such, as personal contact. In addition, grocery retailers are
    expected to see further competition from the internet retailing until 2016, thereby inhibiting stronger
    performances of this market as a whole.
    Consumers are developing appetites for ethnic foods, theme restaurants in France that serve
    international cuisines have increased popularity for international foods, thus creating demand for highquality products. Most ethnic foods are sold in supermarkets. The Monoprix supermarket chain
    pioneered the introduction of ethnic products and other major chains followed notably Carrefour and
    Auchan.
    For product opportunities and additional information on the Retail Sector, including entry strategy,
    please visit FAS/Paris website and reports; particularly the Retail Food Sector and the FAIRS Reports.

    SECTION V. KEY CONTACTS AND FURTHER INFORMATION


    Internet Home Pages
    Internet home pages of potential interest to U.S. food and beverage exporters are listed below:
    USDA/ Foreign Agricultural Service http://www.fas.usda.gov
    U.S. Mission to the European Union http://useu.usmission.gov/agri/usda/html

    European Importer Directory


    http://www.american-foods.org
    FAS/Paris
    http://www.usda-france.fr
    Website for Professional Trade Shows
    and Events
    http://www.salons-online.com
    Questions/Comments and Assistance
    If you have any questions or comments regarding this report, need assistance exporting to France or
    desire French buyers contact lists, please get in touch with the U.S. Agricultural Affairs Office in Paris
    at:
    Foreign Agricultural Service
    U.S. Department of Agriculture
    Embassy of the United States of America
    2, avenue Gabriel
    75382 Paris Cedex 08, France
    Phone : (33-1) 43 12 2245
    Fax : (331) 43 12 2662
    Email : [email protected]
    Home page : http://www.usda-France.fr

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