Supermarkets - France - November 2016

OVERVIEW
What you need to know
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 1: France: Grocery market size segmentation, 2015
Channels of distribution
Figure 2: France: Estimated distribution of spending on food and drink, 2015
Sector size and forecast
Figure 3: France: Retail sales by format, annual % growth in value sales (incl. VAT), 2011-15
Leading players
Key metrics
Market shares
Figure 4: France:  Leading grocers’ shares of all food retailers sales, 2015
Online
Figure 5: France: Leading grocery retailers’ turnover from Drive services, 2015
The consumer
Who shops for groceries
How they shop for groceries
Figure 6: France: Reasons for shopping for groceries online, Q1 2016
Where they shop for groceries
Figure 7: France: Grocery retailer they spend the most with in a typical month, September 2016
Reasons for shopping at preferred retailer
Figure 8: France: Reasons for shopping at the retailer they spend the most with, September 2016
What we think
ISSUES AND INSIGHTS  
A changing retail environment
The facts
The implications
Ethical shopping
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A weak economy
Spending on food and drink non-discretionary
Price holding back value growth
Grocers are the primary channel for buying food and drink
Total retail sales recovered in 2015, further growth forecast in 2016
SPENDING AND INFLATION
Economic growth is sluggish
Deflation and price war holding back spending on groceries
Figure 9: France: Consumer spending on food, drink and tobacco (incl. VAT), 2011-16
Inflation
Figure 10: France: Consumer prices of food and drink, Annual % change, 2011-15
Figure 11: France: Consumer prices of food and drink, Annual % change, March 2015-Sept 2016
Channels of distribution
Figure 12: France: Proportion of consumers shopping for groceries at various types of shop in the last six months, Q1 2016
Grocers dominate
Specialists a vital part of French daily life
Other players’ share is small
Figure 13: France: Estimated distribution of spending on food and drink, 2015
SECTOR SIZE AND FORECAST
Total retail sales recovered in 2015, further growth forecast in 2016
Specialists outpacing the grocers
Figure 14: France: Food retailers’ sales (excl. VAT), 2012-16
But smaller stores outperforming larger ones
Figure 15: France: Retail sales by format, annual % growth in value sales (incl. VAT), 2011-15
Decline in non-food sales at the grocers
Figure 16: France: Sales in supermarkets and hypermarkets by type of product, January 2011-November 2014
Figure 17: France: Food retailers’ sales forecast (excl. VAT), 2016-21
LEADING PLAYERS – WHAT YOU NEED TO KNOW
Retailers evolving to meet demands of changing behaviour
Little change in overall market shares, but variation by store type
Online dominated by Drive services
Competition hotting up in Paris for rapid home delivery
LEADING PLAYERS
A multi-format sector to serve a changing market
Hypermarkets in decline…
…as c-stores and small supermarkets thrive
Discounters
Figure 18: France: Leading grocers, by sales (excl. VAT), 2013-15
Figure 19: France:  Leading grocers, Outlet numbers, 2013-15
Figure 20: France:  Leading grocers, Sales per outlet, 2013-15
MARKET SHARES
Figure 21: France:  Leading grocers’ shares of all food retailers sales, 2013-15
ONLINE
Online sales in France
Shopping online for food
Figure 22: France: Percentage of all individuals purchasing online in the past 12 months, 2011-15
Figure 23: France: Online purchasing, 2011-15
Drive dominates e-commerce in groceries
Figure 24: France: Leading grocery retailers’ turnover from drive services, 2015
Figure 25: France: Leading grocery retailers’ drive locations, January 2016
Figure 26: France: Grocery home delivery services, 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
Shopping still mainly women’s work
Top-up shopping widespread
Online popular for 20% of people
Money concerns influence shopping behaviour
Ethical/organic/green shopping on the up
Leclerc and Carrefour the most popular grocers
Convenience more important than price
Important factors vary by retailer
WHO SHOPS FOR GROCERIES 
Two-thirds of adults are responsible for grocery shopping
Figure 27: France: Who is responsible for grocery shopping, September 2016
Men doing more shopping
Figure 28: France: Who is responsible for grocery shopping, by gender, September 2016
HOW THEY SHOP FOR GROCERIES 
Top up shopping popular
Figure 29: France: Frequency of grocery shopping, September 2016
In-store versus online
Figure 30: France: In-store vs online grocery shopping, September 2016
Figure 31: France: Frequency of shopping online for groceries in the last six months, Q1 2016
Figure 32: France: Reasons for shopping for groceries online, Q1 2016
Figure 33: France: Reasons for not shopping for groceries online, Q1 2016
Figure 34: France: Grocery purchasing services used in the past/interested in using in the future, Q1 2016
Shopping behaviours
Figure 35: France: Grocery shopping habits, Q3 2016
Ethical/organic/green shopping on the up
Figure 36: France: Grocery shopping habits, Q4 2015 and Q3 2016
WHERE THEY SHOP FOR GROCERIES  
A quarter of primary shoppers use Leclerc
Figure 37: France: Grocery retailer they spend the most with, September 2016
Figure 38: France: Grocery retailer they spend the most with, by average age and income, September 2016
REASONS FOR SHOPPING AT MOST-USED RETAILER
Figure 39: France: Reasons for shopping at the retailer they spent the most with (net any rank), September 2016
Figure 40: France: France: Reasons for shopping at the retailer they spent the most with, September 2016
Figure 41: France: Agreement that convenience is a reason for shopping at a retailer (net any rank), by retailer, September 2016
Figure 42: France: Agreement that price is a reason for shopping at a retailer (net any rank), by retailer, September 2016
Figure 43: France: Agreement that items being in stock is a reason for shopping at a retailer (net any rank), by retailer, September 2016
Figure 44: France: Agreement that a good range of non-food products is a reason for shopping at a retailer (net any rank), by retailer, September 2016
Figure 45: France: Agreement that friendly/helpful staff are a reason for shopping at a retailer (net any rank), by retailer, September 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ALDI
What we think
Simpler is better
Figure 46: Aldi joint advertising campaign, 2016
Slowing growth in the UK
Entering the Italian market
Experimenting with online
Company background
Company performance
Figure 47: Aldi: Estimated group sales performance, 2011-15
Figure 48: Aldi: Number of outlets, 2011-15
Retail offering
AUCHAN
What we think
Making the best of its store portfolio
Potential in Central and Eastern Europe despite headwinds
Where now?
Company background
Company performance
Figure 49: Auchan: Group financial performance, 2011-15
Figure 50: Auchan: Outlet data (Europe only), 2011-15
Retail offering
CARREFOUR
What we think
Hypermarkets the ongoing weak spot
Online growing in importance
Looking beyond Drive for online grocery
Company background
Company performance
Figure 51: Carrefour: Group financial performance, 2011-15
Figure 52: Carrefour: Outlet data, 2011-15
Figure 53: Carrefour (Europe): Outlet numbers 2013-15
Figure 54: Carrefour: Store numbers by country, December 2015
Figure 55: Carrefour: European hypermarket numbers (directly operated stores only), 2015
Figure 56: Carrefour: European supermarket numbers (directly operated stores only), 2015
Figure 57: Carrefour: European c-store numbers (directly operated stores only), 2015
Retail offering
CASINO
What we think
Casino supermarkets launch new concept for foodies
Hypermarket format recovery
Innovative new click-and-collect service for seafarers
New express home delivery food service
Flexible store format enables grocery shopping at work
New loyalty scheme with additional benefits
Company background
Company performance
Figure 58: Casino: Group financial performance, 2011-15
Figure 59: Casino: Outlet data and estimated sales per outlet, 2011-15
Retail offering
INTERMARCHÉ/NETTO/ITM ENTREPRISES (GROUPEMENT DES MOUSQUETAIRES)
What we think
Territorial store strength focused on proximity
Expansion of 24/7 click-and-collect points
More generous Intermarché loyalty scheme
Own brand drive supported by in-house R&D team
New easier to navigate supermarket store format deployed in Portugal
Innovative store design for French consumers who have less time to shop
A more personalised online shopping experience
Company background
Company performance
Figure 60: Groupement des Mousquetaires (Intermarché/ITM Entreprises): European retail and supermarkets sales performance, 2013-15
Figure 61: Groupement des Mousquetaires (Intermarché /ITM Entreprises): European supermarket outlet data, 2013-15
Retail offering
E LECLERC
What we think
Forming buying groups to strengthen position
Drive format continues to fuel growth
Investment in stores and product range
Where next?
Company background
Company performance
Figure 62: E Leclerc: Group sales performance, excl. VAT, 2011-15
Figure 63: E Leclerc: Outlet data and sales per outlet, excl. VAT, 2011-15
Retail offering
SCHWARZ GROUP (LIDL, KAUFLAND)
What we think
Chasing Aldi in key markets
Changing strategy in France
Plans to break America
Tentative moves online
The Lidl shopper
Company background
Company performance
Figure 64: Schwarz Group: Group sales performance, 2011/12-2015/16
Figure 65: Schwarz Group: Outlet data, 2011/12-2015/16
Retail offering