Post on 17-Jul-2015
RETAIL IN FRANCE Karen Hallez, EI Paris
Retail in France in a nutshell
• In 2010, the top 100 retailers in France generated cumulative revenues of €270 billion, an increase of 3.8% compared to 2009. French retailers have returned to positive growth in general after a difficult period 2008-2009
• 70% of total retail sales in France in 2010 were generated by grocery retailers – €189 billion. The top 10 retailers in France are all principally grocery retailers/supermarket chains
• E.Leclerc is the largest (in revenue terms) store-based retailer in France – €34.8 billion knocking Carrefour off its number 1 place after a disastrous performance in 2010
• The French online retail sector grew by 28% in 2010 to reach a value of €25 billion. France has the fastest growing online retail sector in Europe
• Consumer behaviour in 2010 driven by price sensitivity and convenience. Economic recovery is still fragile, obsession with purchasing power ergo retailing will suffer the same fate
E-tailing/Ecommerce in France
•France - second largest European market for online retail
•19.8 million broadband subscribers – 12.6 million ‘mobinautes’
•Market Value: €25 billion
•Online retail growing at a faster rate in France than in UK or Germany (overall value forecasted to surpass UK market by 2015)
•25% online purchases were for electronic goods followed by books, music and videos
•French consumers perceive the web as a good place to find a bargain – price comparisons/technical info
Exceptions Françaises & Critical Success Factors
• Groupements (family) vs. indépendants (grocery retailing) and effects on buying behaviour (centralised/decentralised) and therefore sales effort & resource implications (focussed/scattergun)
• Recession – price sensitivity & impacts on increase in promotional activity, good news for private label (MDD), internet retailing
• Importance of acting local – on the ground, French speaking resource
• Conservatism/risk aversion - impact on sales cycles & innovation
• References, references, references
Enterprise Ireland Paris
Karen Hallez
Market Advisor
33 rue de Miromesnil
75008 Paris
Tel. +33 1 53 43 12 08
Mob. +33 6 10 76 74 01
karen.hallez@enterprise-ireland.com