“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
Nestlé hires robotic salespeople

Nestlé hires robotic salespeople

31/10/2014

Swiss Nestlé will employ 1,000 robots to sell its Nescafé coffee machines in Japan. The first batch of 20 robots will start working this year and by the end of...

Kraft Foods' profit melts away in third quarter

Kraft Foods' profit melts away in third quarter

31/10/2014

American food company Kraft Foods, known for its Philadelphia cheese spread among other things, has seen its profits drop while it has managed similar turnover levels.

AB InBev had disappointing third quarter

AB InBev had disappointing third quarter

31/10/2014

AB InBev's third quarter beer sales dropped 2.6 % while its turnover and EBITDA still grew albeit not as much as expected. Lousy weather is considered to be the main...

Growth for Pernod Ricard once more

Growth for Pernod Ricard once more

30/10/2014

After a miserable 2013-2014, French liquor manufacturer Pernod Ricard has managed turnover growth in this fiscal year's first quarter, despite a weak Chinese market.

Carrefour opens Carrefour Express in Luxembourg

Carrefour opens Carrefour Express in Luxembourg

30/10/2014

French retailer Carrefour has opened its first Carrefour Express (a city center formula) in the Grand Duchy of Luxembourg. Carrefour Belgium, which already has a bigger store in Luxembourg, will...

Iglo launches campaign against food waste

Iglo launches campaign against food waste

30/10/2014

Iglo has launched a campaign to bring food waste to the forefront. "Forever Food Together" should help motivate people to freeze food to help counter food waste.

Chiquita shareholders prefer Brazilian offer

Chiquita shareholders prefer Brazilian offer

27/10/2014

Rther than agreeing with Chiquita's merger with Irish competitors Fyffes, the American banana producer's shareholders preferred a deal with a Brazilian buyer - despite the merger finally being approved by...

ISIS chooses peaceful new name

ISIS chooses peaceful new name

24/10/2014

Belgian chocolate manufacturer ISIS has decided to change its name once again, not even 12 months after its previous name change. It will now be called Libeert, as a reference...

Guylian opens Chocolate Café in South Korea

Guylian opens Chocolate Café in South Korea

24/10/2014

Belgian chocolate brand Guylian has opened its first Asian "Belgian Chocolate Café" in the Lotte World Mall in Seoul, South Korea.

Picard to open 250 additional French stores

Picard to open 250 additional French stores

24/10/2014

French frozen-food chain Picard will open some 250 French stores in the next three years, and still aims to double the international share of its turnover.

Food wholesaler Huyghebaert (Prima, Cashwell) declared bankrupt

Food wholesaler Huyghebaert (Prima, Cashwell) declared bankrupt

24/10/2014

Belgian food wholesale company Huyghebaert has been declared bankrupt yesterday. The owner of chains Prima, Cashwell and Uw Buurtwinkel has had a turbulent year, ending in bankruptcy and a possible...

Tesco's profit down 92 % as scandal continues

Tesco's profit down 92 % as scandal continues

24/10/2014

British market leader Tesco has published horrible 6-months results: its British like-for-like turnover fell 4.6 %, while its turnover plummeted 92 %. The damages of the accounting manipulation were bigger...