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Publié le 15/06/2023

Does the Hypermarket Still Have a Future? / RMC

This week Rodolphe Bonnasse spoke on 3 subjects:

-Does the hypermarket still have a future?

-Supermarkets: the price reduction fair.

-Towards a shortage of Ricard and Pastis 51 in Leclerc stores?

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Does the hypermarket still have a future?

  • In France, hypermarkets face challenges related to their large size. Some exceed 25,000 25 000 square meters!
  • Hypermarkets of 8,000 to 10,000 square meters, mainly focused on food, are still successful.
  • Beyond 10,000 square meters, it becomes more difficult for retailers to make each square meter profitable.
  • Hypermarkets are popular with budget-conscious consumers because of their wide selection of products , including economy options, store brands, national brands, and significant promotional offers.

Supermarkets: the price reduction fair

  • Carrefour announces a 10% price reduction on 500 products , obtained by renegotiating contracts with suppliers.
  • The price war in the retail sector is intensifying as industry leaders strive to retain customers hit by inflation.
  • Consumers are finding it increasingly difficult to manage their food budgets and are spending more time in stores due to rising prices.
  • Recent price reductions, averaging around 10%, are not enough to offset the effects of inflation for some customers.
  • Price reductions are expected to continue through the end of the year , following negotiations with private label and national brand suppliers.

Towards a shortage of Ricard and Pastis 51 in Leclerc stores?

  • Some Leclerc supermarkets are experiencing a shortage or very limited availability of bottles of Ricard and Pasti s 51 in the pastis section.
  • This shortage is not due to a lack of supply, but to a disagreement between Leclerc and the Pernod Ricard group on the pricing of their alcoholic products.
  • This is not the first time that such a conflict has arisen between Leclerc and Pernod Ricard. A similar conflict took place in 2019 and lasted three months.
  • Leclerc has decided to stop selling these products in its stores until an agreement on prices is reached.
  • Leclerc supermarkets account for around a quarter of total consumer goods sales in France , making this conflict significant in the retail sector.

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