Blog: E.Leclerc in push for French retail top spot

Michelle Russell | 20 May 2013

French retailer E.Leclerc has added fresh impetus to its previous declaration of overtaking rival Carrefour in its domestic market by bringing its target forward a year.

The chief executive of privately owned Leclerc reportedly said a focus on low prices will enable it to overtake Carrefour in France ahead of schedule, by 2014.

According to Reuters, Michel-Edouard Leclerc told a news conference it remains focused on staying ahead in the price war heating up among French retailers. "I thought that in 2015 our chart line and that of Carrefour would cross, I think we will reach that point one year earlier," he told attendees.

Leclerc's market share is currently at 18.8% as of 24 March, according to Kantar Worldpanel data. This is against Carrefour's 20.5%.

Losing the top spot in its home market would be a blow to Carrefour, which has been fighting hard to improve its domestic performance - a market which accounts for over 40% of its sales.

The weak European markets have certainly played their part in making life tough for food retailers in the region, as shoppers' disposable incomes are squeezed by rising prices, subdued wage growth and austerity measures.

But Carrefour saw an improved performance at its core French stores in the first quarter, thanks to its recent pricing initiative.

Leclerc, however, has continued to make lots of noise on price and making sure it offers the lowest price across a number of areas. It also managed to book a respectable performance in 2012, despite the price intensity of its domestic market. It claimed its share of the market grew faster than its rivals last year, with sales up 7%.

Leclerc's chief executive is one of the more vocal characters in the French retail sector but his latest comment are sure to throw down the guantlet to his equally as outspoken counterpart at Carrefour, Georges Plassat.


BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

BLOG

Premier Foods pension news offers cheer but challenges remain

Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....

BLOG

Another reshuffling of pack at Hain Celestial

Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....

BLOG

FrieslandCampina looking to sell final non-dairy asset

FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....

just-food homepage



Forgot your password?