Retail in France 2011

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

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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

[email protected]

mailto:[email protected]

Retail in France 2011

Business

Transcript of Retail in France 2011