Leclerc is now a full percentage point ahead of Carrefour in terms of French grocery market share, according to Kantar Worldpanel data for the 12 weeks to 19 September.
Leclerc sits on 21.2% market share, compared to Carrefour’s 20.2%. In the previous period (12 weeks to 23 August), Leclerc held a 70-basis-point lead over its rival, but it has been able to extend its advantage due to a positive performance by its stores, which are up 0.6% year on year, and its Drive outlets (+0.2%), Kantar Worldpanel said.
Elsewhere, Intermarché holds 14.7% market share, while there is close competition for fourth place in the market, with Casino on 11.6% – marginally ahead of Système U (10.8%) and Auchan (10.4%).
Further back, Lidl holds 5.3% of the market, Delhaize is on 3.3%, and Aldi sits on 2.2%. Lidl has captured an additional 450,000 customers over the period, driven by strong TV and radio advertising.
Overall, French household spending declined by 0.7% during the period, however, if the full year to date is taken into account, spending is up 0.6%.
Growth Concerns
Commenting on the findings, Bruno Monteyne of Bernstein Research said, “French food consumption growth is well below population growth, two years in a row. The French FMCG market is growing just 0.6% so far this year, and volume is shrinking 0.1%. This comes despite an easier comparative, better economic conditions this year, and 0.7% population growth. Weak growth is driven by structural shifts in consumer preferences and is set to continue.”
On Carrefour’s weakening performance, Monteyne added that the retailer’s “problems are extensive” and are not simply based around price.
“In addition to the weakness online and in promotional growth, there is a very long list of problems at Carrefour. They seem to be losing touch with their core consumers and are declining in perceptions of price, choice, quality and promotion. Sources which should be strength, such as fresh produce, are not a source of growth for Carrefour.”
© 2017 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.
