The French grocery market is changing as increased investment is going into new discount store concepts across the country, according to market research group IGD.
The organisation says that France has not traditionally been known as a discount market for the grocery sector, but that the situation is rapidly evolving.
“French supermarket retailers have fought hard against the discounters’ low prices to maintain market share," said Milos Ryba, head of discount and CEE at IGD.
"By having bigger ranges and moving into other channels such as convenience and online, they attract more shoppers as the way people are shopping evolves to become more multichannel. It is important for discount players and their suppliers to understand the current grocery trends in France to be able to adapt the offer better to the French shopper and their changing needs.”
Key Trends
IGD says that organic food and product reformulation represent significant opportunities in France as consumers are focusing more on health and well-being. It notes that reformulation at discounters is driven by private label, which creates a challenge for brands to remain competitive.
One of the fastest-growing opportunities is the food-to-go market. IGD says that more and more retailers are launching their own food-to-go ranges, and that innovations such as sushi bars could be well received in France.
As with most markets, the online channel in France is also growing, and IGD says that retailers need to focus on investing in modern online and digital solutions.
"All of the French discount players have different priorities; therefore it is important for suppliers to understand how each of them operates and what is important to them to succeed," added Ryba. "With this information, suppliers should adapt their strategies with each discounter accordingly rather than having a single channel approach."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
