The latest publication of Échos Étude, “The future of discounting in France”, deciphers market dynamics and economic models based on a benchmark of 45 discount brands.
In a context of price inflation and constrained purchasing power, discount is essential in France. Action Successes, performance of Lidl and Aldi, rise of Normal… These brands are favored by more and more consumers looking for good deals and low prices. They stand out thanks to their striking force, while having modernized the discount image. This dynamic market arouses desire, as illustrated by the acquisitions of Maxi Bazar and Stokomani by Moez Zouari and the incursion of new brands and new models.
Levers to pull in addition to prices
Despite this return to favor of discount, the sole promise of low prices is no longer enough. We see it in food (questions about the future of Supeco which could give way to Atacadão at Carrefour, carve-up of Leader Price and launch of LP at Casino), as in non-food (Klo's difficulties, disappointing performances of Hema and Flying Tiger, closures at Noz). the concepts, which must be robust and differentiating, require optimizing supply sources, the offer (novelties, seasonal offers, opportunity purchases, etc.), but also the layout of points of sale (staging, purchasing journey).
A reconfiguration to come
At the same time, a race for size has begun in order to maximize the commercial footprint (market shares) and make use of economies of scale (purchasing volumes, investments). While the sector remains fragmented, market concentration seems, henceforth, inevitable. Who will be the winners of the return to grace of discount ? What place for new entrants and new concepts ? What dynamics at four years and what recomposition to expect ? These are the questions that determine the future reconfiguration of discount.
