FRENCH FOOD RETAIL: An analysis of the French food retail environment
Although France is blessed with thousands of options for the consumers to get their food and basic needs, (2 261 hypermarkets, 5 850 supermarkets, 3 389 discount stores and 20 000 local minimarkets), the concentration of grocery power is in the hands of a few. Five major chains … Carrefour, Coopérative U (Système U before 2024), E. Leclerc, Auchan and Les Mousquetaires … account for over 84% of total sales in the country. Once one adds up the two main discounters, Lidl and Aldi, the market concentration builds up to 95%.
French retailers have expanded worldwide, starting in Europe, but now are also present in the Caribbean (Guadeloupe, Martinique, Saint-Martin), South America (French Guiana), North America (Saint-Pierre and Miquelon), Africa (La Réunion, Mayotte), Asia (Taiwan and Southeast Asia), Oceania (French Polynesia, Wallis and Futuna, New Caledonia, Clipperton) and even in Antarctica (Southern Territories, French Antarctic Territories). The Hypermarket concept was first launched by the French, and they probably have the highest concentration of large format stores per 1 000 inhabitants than anywhere else in the world. French hypermarkets have become the training school for many retailers worldwide.
Even though hypers are considered to be ‘nonspecialised’ (due to their wide ranges and emphasis on price), they nevertheless enjoy a position of strength in the psyche of the French consumer. According to research by FCD France, this sector employs 1,9 million people, sells up to Euros 240 billion and accounts for the basic needs of 70% the French population. Private label is extremely strong in this environment. In 2018, it accounted for 26% of all sales – today, it has reached 34,2% of total store sales. In some departments such as dairy, eggs, fresh meat and processed meat, the sales of private label products account for an astonishing 47% of total
sales in those categories. Three models illustrate the French food retail landscape: cooperativism (E. Leclerc, Cooperative U), branching (Carrefour) and business associations (Les Mousquetaires.)
A brief breakdown of some dominant French chains:
E. Leclerc (24,4% market share) is a chain of hyper markets and supermarkets founded in 1949, with a strong presence especially in France through the widespread work of 16 regional cooperatives. It has a turnover of 48 billion euros (excluding fuel sales), has 734 points of sale, 731 ‘drive-in centres’ and employs 140 000 workers.
Carrefour (21,5%) is a well-known multinational opera ting in more than 40 countries worldwide, which
acts directly (through direct presence or franchising agreements) in France, Spain, Italy, Belgium, Poland, Romania, Brazil and Argentina. The distribution formats involved in the strategic lines of this very influential
group are: hypermarkets, supermarkets, minimarkets, Cash & Carry stores and discount stores, for a global turnover of 92 614 billion euros, employing over 305 000 workers.
Coopérative U (called Système U before 2024) with a 12,3% market share is a French symbol group retailers cooperative of independent hypermarkets and supermarkets. It owns the trademarks Hyper U, Super U, U Express and Utile, which are used by its members. In 2024, Coopérative U had 1 726 stores in 14 countries. Les Mousquetaires (17,2%) is a group of independent entrepreneurs (who call themselves ‘musketeers’), founded in 1969 and involved in food with the brands Inter marché, Netto, Les Comptoirs de la Bio, in DIY with Biomarché, Bricolage Cash and Bricorama, in other sectors with the brands Roady and Rapid Pare-Brise.
It has a turnover of 39.9 billion euros (excluding fuel) and employs around 150 000 people in over 7 300 outlets.
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