|
|
 |
|
Viewing report
|
|
|
|
France Food and Drink Report Q2 2010
Business Monitor International, March 2010, Pages: 92
The France Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on France's food and drink industry.
Over the last three months, the French retail sector has been characterised by price cutting and cost saving as operators attempt to adapt to the prevailing market conditions. Three of the country’s largest retailers, Carrefour, Casino and Auchan, have all taken steps to improve their pricing image, which have necessitated a re-examination of their cost base.
In January, Lars Olofsson, CEO of France-based mass grocery retailer (MGR) Carrefour, announced that the company is planning to spend one-third of a EUR3.1bn (US$4.47bn) cost savings plan – targeted for completion by 2012 – on price promotions, while the remaining two-thirds will be used to boost profitability. The firm also announced it was planning to relocate from its rented headquarters in Levallois-Perret, north-west of Paris to other offices in the south west of the city. A company spokesperson stated that the rent of the offices in Levallois-Perret was not in line with the company’s cost reduction strategy. In the same month, Carrefour launched a new domestic advertising multi-media campaign, a follow-up to its first own-discount label promotion launched in May 2009. The campaign, which includes a national advertising and multimedia push, is set to strengthen the company’s price image.
In a similar vein, French retailer Casino announced in November 2009 that it would cut costs by bringing its hypermarket and supermarket divisions under a single management team. Supermarket head Andre Lucas will become chief operating officer of both divisions. According to the retailer, ‘this new organisation aims to improve the coordination between the brands’, referring to better customer service, purchasing and logistics. The company added that Casino’s non-food purchasing and food purchasing departments will also be combined under merchandise and supply chain Director Herve Daudin to increase ‘operational efficiency’. A month earlier, the retailer reported a 1% fall in Q309 sales to EUR7.12bn (US$10.5bn). The French market accounts for nearly two-thirds of group revenues and the retailer reported an organic drop of 4.4% in its domestic market. The retailer stated that it is moving ‘up a gear’ in implementing cost cuts and optimising food and non-food product mixes. Casino also reconfirmed its target to improve the net debt/EBITDA ratio at year-end and to reduce it to less than 2.2 by the end of 2010. The group has also announced an asset disposal plan worth EUR1bn (US$1.4bn), with its 57% stake in Dutch retailer Super de Boer expected to be sold as part of this plan. In a final example of this focus on prices, French retail giant Auchan announced it is planning to launch its first discount hypermarket by transforming an existing 9,000m² hypermarket in Mulhouse, eastern France into a discount outlet, reports Just-food. The new outlet, to be operated under the new Priba by Auchan name, is scheduled to open by early April 2010. The 100% self-service outlet will provide a range of 25,000-30,000 products, compared with a traditional hypermarket with around 65,000 products.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
France Food and Drink Report Q2 2011
France Food and Drink Report Q3 2011
France Food and Drink Report Q1 2011
France Food and Drink Report Q4 2010
France Food and Drink Report Q4 2011
Thailand Food and Drink Report Q1 2011
Qatar Food and Drink Report Q2 2011
Romania Food and Drink Report Q1 2011
Brazil Food and Drink Report Q4 2011
Bulgaria Food and Drink Report Q3 2011
|
|
|
|
