“E.Leclerc in 2014 bigger than Carrefour” in France

  • Written by 
  • Published in Food
  •   
Featured “E.Leclerc in 2014 bigger than Carrefour” in France

CEO Michel-Edouard Leclerc is predicting his group of supermarkets to have a larger market share than competitor Carrefour in France by 2014 and not 2015, as he thought earlier. Price comparisons online, on smartphones and in the shops should help this happen.

‘Thanks’ to crisis

The crisis is hitting hard in France: in 2012 the purchasing power of the French declined for the first time in 30 years. The decrease is 0.4% in absolute numbers, but corrected to the demographic evolution it reaches even -1%. E.Leclerc is one of the victors of the crisis, as could be seen earlier this year.

 

The group recently made low prices its spear point and it sees its market share growing gradually because of it. According to market research agency Kantar, E.Leclerc currently has a market share of 18.8% (on yearly basis up to 24 March). This means market leader Carrefour (all formats combined) is not far off at 20.5%.

 

“I thought the curves would cross somewhere in 2015”, says chairman Michel-Edouard Leclerc, “now I assume it could happen a year earlier.”

 

QuiEstLeMoinsCher.com

To speed up this takeover of power, CEO Leclerc is counting on the principle of price comparisons.  Via a new price comparison site – with the eloquent name QuiEstLeMoinsCher.com (“Who is the least expensive?”) – all customers can compare prices with those of competitors in the neighbourhood. According to E.Leclerc 98% of their shops is cheaper than those of the competition.

 

It does not stop there: E.Leclerc has also developed an app for smartphones, that allows the customer to scan the code of a product and it will immediately show the price at Leclerc, but also at its competitors in the region. Those people that do not own a smartphone, or don’t have it with them, can use special columns that will be placed at several shops. The whole strategy will also be supported by several ads and commercials.

 

With this E.Leclerc launches its counter-attack on Carrefour – that early 2012 lowered the price of 500 commonly used products permanently and has been showing comparative ads on television since the arrival of new CEO Plassat – but also on Casino, who launched a campaign about having the lowest prices for no less than 3,000 products.


Questions or comments? Please feel free to contact the editors
Metro Group reaches own turnover forecast

Metro Group reaches own turnover forecast

21/10/2014

German Metro Group has managed to reach its 2013/2014 forecast, reaching a marginal like-for-like turnover growth of 0.1%.

Dutch vegetables avoid Russian boycott through Turkey

Dutch vegetables avoid Russian boycott through Turkey

17/10/2014

Dutch vegetable growers are avoiding the Russian boycott of Western items using a side-step through another country: Turkey.

New Colruyt subsidiary Cry opens three more stores

New Colruyt subsidiary Cry opens three more stores

17/10/2014

Belgian supermarket chain Colruyt's new concept, Cru, is yet to open its first store in Overijse (scheduled for November), but it has already announced it will also come to Antwerp...

Tesco's three different crises reinforce each other

Tesco's three different crises reinforce each other

17/10/2014

Tesco has once again placed three managers on non-active duty, after it had already fired five others because of a previous blunder. It seems the British market leader is now...

Spontaneous strike at Delhaize distribution centres and stores

Spontaneous strike at Delhaize distribution centres and stores

16/10/2014

The Delhaize employees at the Zellik distribution centre and the Ninove warehouse have decided to halt work, after the management announced details on its restructiring plans. A dozen stores has...

Carrefour's quarterly turnover up nearly 3 %

Carrefour's quarterly turnover up nearly 3 %

16/10/2014

French retail group Carrefour has managed to raise its quarterly turnover by 2.8 % to 21.1 billion euro. Over the past 9 months, it has now sold 61.4 billion euro's...

Swiss franc and European price war hold Nestlé back

Swiss franc and European price war hold Nestlé back

16/10/2014

Swiss food concern Nestlé's turnover growth in the first 9 months of 2014 has failed to live up to the expectations. Price pressure and a strong Swiss franc have affected...

Baby food boosts Danone

Baby food boosts Danone

15/10/2014

French food manufacturer Danone has done better than expected in its first quarter, thanks to increased baby food sales, which has grown for the first time in a year.

Autobar becomes Pelican Rouge and moves to the Netherlands

Autobar becomes Pelican Rouge and moves to the Netherlands

14/10/2014

Vending machine specialist Autobar has been acquired by its creditors, who will be moving its London headquarters to Dordrecht while changing its name to Pelican Rouge.

Italians launch beer spread

Italians launch beer spread

13/10/2014

What happens when an Italian chocolate maker and a brewer meet? The first beer chocolate spread in the world! But Nutella does not have to worry: Birra Spalmabile is not...

Tanger opens store in Zaandam

Tanger opens store in Zaandam

13/10/2014

Multicultural supermarket chain Tanger Markt has opened a store in Zaandam, Albert Heijn's hometown. It is the sixth store of the chain, which has one store in Belgium.

Delhaize Group loses its executive vice president

Delhaize Group loses its executive vice president

13/10/2014

Another board member has left Belgian supermarket group Delhaize's board: executive vice president, general counsel and general secretary Maura Abeln Smith has left the company.