Carrefour has closed the gap on market leader E.Leclerc at the summit of the French grocery sector, according to the latest market share data from Kantar, however, the Boulogne-Billancourt-based operator still has a lot of work to do.
According to the data for P07 2019, which covers the period 10 June to 7 July, E.Leclerc leads the French grocery sector with a market share of 21.4%, compared to 20.5% for Carrefour.
This compares with 21.7% for E.Leclerc and 20.0% for Carrefour in the P06 period.
However, at this time last year, the difference between the two grocers was 20 basis points – 21.1% for E.Leclerc to 20.9% for Carrefour.
The Chasing Pack
Intermarché sits on 15.0% market share, according to the latest figures, a 30 basis point increase on the same period last year, whole Groupe Casino holds 10.8% share (down from 11.6% in the same period last year.
Système U holds 10.8% market share (compared to 10.7% in the same period last year), while Auchan is on 9.9% share (competed to 10.0%).
In terms of market share growth, Lidl is once again the strongest performer, with 6.0% market share in the current period, compared to 5.5% in the same period last year. Fellow discounter Aldi is on 2.3%, while Delhaize is on 2.7%.
Household spending rose by 1.3% in the period, according to Kantar.
Leading Performance
Commenting on the performance of the top grocers, Kantar said that E.Leclerc saw a larger number of customers in its physical stores while also retaining customers across its Drive business.
Intermarché has reached the 'symbolic mark' of 15% market share, with its Intermarché banner (13.8% share) enjoying a higher level of loyalty.
Système U, similarly, has been 'able to attract more customers over the period', with nearly 200,000 additional households shopping at the retailer in early summer, according to Kantar.
Lidl, the strongest performer in the period, has reached a market share of 6% for the third time this year, attracting more than 600,000 additional households, while also increasing its media spend quite considerably, including around the recent Tour de France.
Out-Of-Sync
Commenting on the data, analyst Bruno Monteyne of Bernstein Research said that the channel shift seen over the period is "out-of-sync with the longer term trends: Hypers gained +3bps, Discounters +18bps and Online +18bps, whilst Supers lost -36bps and Convenience -3bps. The hypermarket growth of +3bps is atypical for France and could be linked to World Cup last year and changes in weather.
"The run rate (12 month) for hypermarket losses is -20 bps. This short term hypermarket boost should support retailers with disproportionate hypermarket exposure (e.g. Carrefour and Auchan)," he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
