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Retail

Discount Channel The Fastest-Growing In France In Q1, Says Kantar

By Steve Wynne-Jones
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Discount Channel The Fastest-Growing In France In Q1, Says Kantar

The discount channel reported a 0.4 percentage point increase in market share in France in the first quarter of 2023, to hold 11% of the market, new data from Kantar has shown.

Led by Aldi, which grew its market share to 3.0% during the quarter (a 0.2 percentage point gain), and Lidl, which now sits on 8% (a 0.1 percentage point gain), the discount channel was the fastest growing during the period.

Elsewhere, the supermarket channel, which accounts for 29.6% of the market, saw a 0.2 percentage point gain in market share during the quarter, while the proximity channel was also up 0.2 percentage points, to 6.8% of the market.

Going the other way were the hypermarket channel, which saw a 0.1 percentage point decline in share during the period, despite gaining popularity due to their low-price offering, while the online channel was down 0.2 percentage points.

Retailer Performance

In terms of the best-performing retailers in the period, E. Leclerc experienced a growth of 0.3 percentage points, reaching 22.5% of market share, while Les Mousquetaires, which operates the Intermarché banner, increased by 0.1 percentage points and reached 15.8% of market share.

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Magasins U remained steady, consolidating at 11.7% of market share. However, Auchan Retail saw a decline in the quarter, dropping to 8.9% market share.

According to Kantar, the most recent quarter has seen an increase in shopping around, with the French visiting nearly nine different retailers on average during the period.

Inflation Hits A Record

Food price inflation rose to 16.2% in March 2023 (source: Circana), a new record, while French households have faced double-digit inflation in food prices for the sixth consecutive month.

The 'anti-inflation baskets' deployed by retailers, which mainly target entry-level products and private label brands, have enabled the lowest-earning demographic to purchase more volume (+2.8%), Kantar added.

© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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