Hard discount loses market share

New French paradox: in times of crisis, the cheapest reputable stores are losing market share.

The market share of hard discount stores comes down to only 12.6%. This figure, stated last October by Kantar Worldpanel institute is well below the 14% recorded in 2009.

French consumers seem to shun these stores austere to the limited range. Preferring hypermarkets and supermarkets offering labels and national brands. Shopping at discount prices to manage better the family budget but also purchases "pleasure" of superior quality food products.

Given this situation, Lidl and Leader Price have brought national brands to their assortment; Netto, the network of Intermarket group, focuses on fresh produce. The hard discount must also cope with the development of supermarkets "of proximity" which are multiplied, and to the vogue of "drive" which won 4.4% of the market in a short time.

source : les echos fr