This report discusses the French grocery retail market and how sustainability topics are evolving within the context of retail competition in the French market.
As the world’s sixth-largest economy, France has historically been a net exporter of retail innovation. These innovations have included pioneering sustainability programs. French retailers have been extremely proactive in building best practices in efficient store design, investing in sustainable agriculture, and developing virtuous energy cycles. In most instances, leading French retailers have taken these ideas with them when they have invested in other parts of Europe and overseas.
This pioneering spirit came under threat beginning in 2007 when the French economy underwent major structural changes. French retailers today face a set of very difficult trading conditions. The result is that many French retailers have scaled back their ambitions outside France and have begun to fight bitter market share wars within France.
These market share wars have slowed innovation in sustainable retail innovation. However, French shoppers continue to demand the very best from retailers. This demand has produced an environment in which French retailers are now innovating in sustainable retailing but doing so within tight budgetary restrictions. These constraints have actually produced a sustainable retail model that is easier to export to countries with lower levels of innovation and smaller budgets.
In this report, we answer the following questions:
- The French market outlook: How will retail develop in the next five years? When will French retailers begin to export innovation in sustainability en masse again?
- Channels to watch: Which channels will grow in France and how quickly? Will hypermarkets be the channel to watch or will new channels emerge?
- Retailers on the move: Which retailers are winning or changing shape, and what does this mean for innovation in sustainability coming from France?
1. Executive Summary
- Five Key Facts to Consider When Thinking About Retail in France
2. France: The Economy and Its Impact on Retailers and Shoppers
- Global Recession of 2007: An Inflection Point
- The Retail Market Outlook: Key Growth Metrics
- Retail Conditions in 2015/2016
- Economic Conclusions
3. France: The Modern Retail Landscape, Channel Developments, and Implications for Sustainability Programs
- Market Consolidation
- Price Wars
- Format Innovation
- Anti-Competitive Regulations
- Decline of the Mighty Hypermarket
- The Rise of Proximity Grocery Formats
- The Myth About Discounters
- eCommerce and eGrocery
4. Retailers on the Move: Who Is Innovating in France?
- E Leclerc
- Système U