Atacadao, Costco… Large-volume supermarkets, mere competitors or true revolutions?

Enter right here, Atacadao. No, it isn’t the Selecao’s thrilling new gamers after Neymar and Vinicius, however the institution of the Carrefour department in Brazil, as its identify suggests. The grocery store group introduced its intention to import a primary take a look at retailer in Île-de-France in autumn 2023, at a time when France goes by means of a historic interval of inflation and affordability disaster.

Atacadao is a “discounter”, a model that gives merchandise at extraordinarily low costs, a form of Lidl on steroids. To enable such concessions, right here, we do with out frills: the signal appears to be like extra like a warehouse than the supermarkets you frequent, the place merchandise are bought in containers, pallets or on steel cabinets. To maximize purchases, we purchase in very massive portions, most merchandise are bought in kilos or litres. Not many references – lower than 10,000, 4 occasions extra in a standard hypermarket, virtually any model, merchandise are bought collectively at their lowest place… and voila: depend between 10 and 15% decrease costs than anyplace else.

A change in habits

Does this retailer name for others sooner or later? Yves Marin, shopper and retail professional at consulting agency Wavestone, does not hazard a prediction: “It’s a totally completely different mannequin to what we all know in Western Europe. So it’s fairly troublesome to foretell how the accustomed shopper will react. Two Costcos, an American retailer primarily based on roughly the identical mannequin, have already gone up in Île-de-France in 2017 and 2021, respectively, however not sufficient to upset the behavior for now. The identical commentary with Yolande Peiris, professor of administration science and distribution professional on the University of Bretagne-Sud: “It doesn’t correspond in any respect to the way in which we eat. Low value is one factor, this sort of signal is accessible for each people and companies. You would possibly already be going for a reduction, nevertheless it’s uncommon so that you can purchase a 10kg packet of rice. This is the mannequin for these manufacturers, Costco even works on subscription solely.

Just as we do not see flowers with out spring, this sort of grocery store solely grows in occasions of financial disaster, factors out Pascal Hebel, affiliate director of C-Ways, a consulting agency on prospect advertising and marketing. He takes the instance of Lidl, which had problem establishing itself within the early 2000s, when France didn’t expertise such inflation. “It would have been higher for Atacadao and different such fashions to achieve the height of inflation now,” believes the professional.

Where are you, center class?

Of course, the financial forecast for 2023 and even 2024 shouldn’t be good. “Sustainable progress is unlikely within the coming years,” stated Pascal Hebel. In fact, economists anticipate extra recessions than growth years. If you don’t swear by something, Yolande Peiris believes that the mannequin will discover an viewers when it arrives: “The floor is favorable for this type of proposal, most likely nonetheless in a 12 months and past. »

On the opposite hand, if the state of affairs improves, it is not going to make sense for Atacadao to journey to France, the professor of administration continues: “It is a mannequin that won’t divert purchases from the completely well-off households, it’s going to appeal to. Only modest households. To supply worth The solely argument, due to this fact, is that it’s restricted to raised financial occasions.” One might argue that the warehouse model has however managed to determine itself completely in Brazil and the United States, “however these nations are topic to deeper inequality. With the disappearance of the center class, it stays to be seen whether or not France is heading on this route. topic,” warned Yves Marin.

The Future of Constraints

And then, Cocorico, France stays France, the land of gastronomy. A socio-cultural capital that counts when purchasing. “The French will probably be extra involved in regards to the high quality of meals merchandise than the Brazilians or the Americans. This is very the explanation why Lidl needed to “turn out to be well mannered”, as a result of the value logic, which was exuberant in the course of the disaster, rapidly grew to become inadequate afterwards”, resumes Pascal Hebel. .

He talks right here a few time that under-20s could not know, however when it was based, Lidl performed it up with pallets and nil fuss, earlier than going just a little upmarket. Welcome to the infinite circle of {discount}, Pascal Hebel explains: “A extra economically environment friendly mannequin comes, which leaves others and forces them to go to the upper market, earlier than this identical mannequin turns into bourgeois, one other extra environment friendly mannequin comes…” In the start , within the Fifties, the Leclerc was additionally thought of hard-discount earlier than gradual standardization.

Atacadao & Co can due to this fact set up itself on a long-term foundation. Because if we – we hope – inflation peaks and the struggle in Ukraine – we hope – ends, “we’re nonetheless heading for a troublesome interval. With local weather change there’s a danger that agricultural manufacturing will turn out to be dearer and sources extra scarce. In this case, concessions And decreasing costs could be a hyper-competitive argument”.

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