Retail Core English Version

Initial assessment of floating balances

2009-05-25T00:01:00.000-07:00

Floating balances (traders the opportunity to choose two weeks of sales per year) was one of the measures implemented to boost competitiveness and attendance centers. Overall, the results are very mixed. The National Center malls (CNCC) found that attendance in supermarkets fell 4.7% in April 2009 compared with same month in 2008.

In fact, it appears that the device floating balances would be more effective if the distributors agreed to consult and establish a common catalog.

Cheap iphone? soon ...

2009-05-19T08:38:00.001-07:00

Apple Iphone could launch a cheap, it could launch cheaper versions of the iPhone without having to subscribe to the monthly data transfer, in order to boost sales of its handset.

The next year or in two years, iPhone models do not require a monthly subscription service for data transfer representing a minimum surcharge of 30 dollars (22 euros) in the United States, will be offered to their customers . A cheap model would also help Apple reach an agreement with the telecom operators in China to enter the largest market in the world.

The decline in the price of the Iphone is logical for me, since technological change push phone models to be less and less. Finally, it is not surprising to Iphone enters China market since it is the end of the cycle of innovation for the European telephone companies.

The agency FITCH, pessimistic for large retailers in 2009

2009-05-18T03:02:00.000-07:00

Find below a dispatch from Reuters of 14 May that I have voluntarily decided to publish because it is self-explanatory and does not deserve additional comments:

For large retailers, 2009 is a lost year "(Fitch)

"The effects of changes, slower inflation and lower sales volumes should greatly affect the European brands of large retailers, most of which will stop their policy of expansion, said the rating agency Fitch on Thursday. "2009 is a lost year in terms of growth for all brands of distribution, which will focus on their core market and core business," said at a press conference Johnny Da Silva, Research Director at Fitch.

Last year, distribution was resisted by increasing food prices, which had helped offset declines in volumes. But in 2009, the drop in consumption linked to the crisis continued, but inflation also slowing. As a result, overall growth in sales the first six food groups in Europe (Carrefour, Tesco, Casino, Sainsbury, Metro and Ahold) is expected to melt at 4% this year against 8% in 2008, according to Fitch. The non-food brands should continue to suffer this year after suffering adverse trade-offs of consumers in 2008.

The turnover of these brands (Kingfisher, Marks and Spencer, Next, DSG) is expected to grow by less than 1% in 2009 against 1.5% in 2008. The impact of foreign exchange is also very important (down to the pound sterling for UK retailers, strong euro for distributors french or German). The effects of changes expected to cost between 1% and 3% of sales of European brands, predicted Mr. Da Silva. In response to these problems, food retailers and food should not reduce their investment of -15% and -45%, in particular investment for expansion. Carrefour has already announced earlier this year to focus on France, its traditional market, while the British put Tesco on Great Britain and Metro in Germany.

Among the ten brands in this study, Fitch indicated that only the Dutch Ahold and Sainsbury British have a margin of maneuver for a policy of expansion. The first because it has already restructured in the early 2000s and the second because he conducts a prudent financial policy, "said da Silva.

The decline in consumption also affects the full brunt of the food and spirits. Food companies Nestle, Unilever, Danone and Cadbury and should record increases in turnover of up to 2%, far from the goals of 5% to 9% set by these companies, said Fitch. The turnover of the companies in wines and spirits (Diageo, SAB Miller, Carlsberg, Pernod Ricard) should be between -2% and 2%, after growth in a range from 5% to 7% last year. The benefits should be either stable or decreased after an increase between 5% and 9% in 2008 and up 27% in 2007. People not only consume less than spirits, but they refer to the cheaper brands, noted Fitch. "

Française des Jeux and Retailers

2009-05-13T00:01:00.000-07:00

La Française des Jeux (FDJ) has confirmed the closure of its outlets in supermarkets whose opening had attracted the wrath of tobacconists. The withdrawal can be explained by "the changing economic environment."

It seems rather than lobbying tobacconists is more convincing than that of supermarkets. It is true that the tobacconists are already in trouble with the restrictions on tobacco. Rest now know where the interests of consumers?

Fair Trade face to the crisis

2009-05-11T16:16:00.000-07:00

Here is clearly another victim of the financial crisis.

Introduced in France in 1950 by Abbé Pierre, fair trade has made a tentative entry into our country. 9 years ago, only 15% of consumers were aware of fair trade.
The 2000s are a good omen for this type of trade because it falls within the mores of consumers.
In 2008, while 80% of consumers have already bought products from this type of trade, fair trade grew by 22% and represents an annual turnover of around 260 million euros.

This year, the price of fair trade products that are labeled in the stores are 22% more expensive than a conventional product. With the crisis, families are much more attention to their budget and solidarity is no longer part of their priorities.

I find that it is precisely at this moment that the symbolic gesture of solidarity is strongest.

"The rich can not change the lives of the poor, but when it becomes a poor turn, it can however understand all the poor."

yes I know the deep Bisounours, so what? it feels good sometimes not:)

Carrefour : Wants to play Tzar

2009-05-07T07:02:00.001-07:00

Carrefour already operates in China, turns his head towards the "Rodina" (Motherland, Russia). Indeed, the french group of large retailers want to buy the Russian Sedmoï Kontinient for 1.24 billion dollars.

In fact, by the particular group of countries to adapt culturally, where it expands, which Russia sees good eye redemption. Carrefour is already prepared to adapt these products and messages to a Russian customer.

While Carrefour appeared to have been weakened by various problems (see our post on Carrefour) it is the opposite of a surprise expensionisme.

The crisis does not seem to have weakened all the major brands .....

Carrefour wants to penetrate the BRIC market

2009-05-05T05:57:00.000-07:00

After China and unable to settle in India where the group met with many difficulties, it seems that Russia offers more facilities. Indeed, Carrefour is reportedly negotiating the purchase of the supermarket chain Sedmoï Kontinient. The amount of the transaction involved a total of approximately 940 million euros. Russian distributor currently has 140 outlets in Russia.

It would therefore appear that the establishment of Carrefour in emerging markets with high potential remains a priority of his strategy.

iPhone, the key to its success: The innovation

2009-04-26T08:10:00.000-07:00

The Iphone is not only became the flagship product of Apple but it has now become a benchmark for innovation in terms of mobile telephony.

In effect, the device combines the use of a mobile phone, a mobile Internet terminal, a personal digital assistant, a digital music and console games.
The application-specific Apple iphone have passed the milestone of one billion downloads last Thursday evening. Pay or free, the choice is vast. Among the 35 000 appplications available on the App Store, the platform for downloading games is the lion's share.

The major innovation of the iPhone is the ability to interact with the touch screen through an interface that allows you to use two fingers simultaneously and which has been recognized as very intuitive. This translates into a utilization rate of the very important function navigation (> 90%) unlike other mobile terminals equipped with the navigation.

Another example of strategic innovation: adaptation iphone online games of the world's most popular World of Warcraft (11 million players).

Here is a test of the game on the iphone. :

In terms of development, Apple has already released the iPhone 2 which includes a 3G version and soon the iphone 3.

The computer world is attracting a lot of time, Apple have the best possible partners for the service offering of the iphone is incomparable.

Here is a model mobile than many other brands and operator must imitate.

e-commerce équitable

2009-04-20T00:01:00.000-07:00

With the development of e-technology, expands its Fair Trade means to them. A good example of e-commerce can be LA GALERIE EQUITABLE which is part of the cooperative activities and employment "Creative Touraine". The products are sold crafts made exclusively by hand.

Reminder: the rules of fair trade concern both working conditions, respect for the environment, transparency between partners, reducing the maximum number of intermediaries and the purchase price.

still in colima

2009-04-14T02:47:00.000-07:00

According to information from the AFPof the 30th March 2008, the Norwegian NGO Vaara I framtiden Hender (FIVH, "The future in our hands") accuses Ikea but also the french retailer Carrefour and the american retailer Wal-Mart to use the services of a supplier Turkish Menderes Tekstil, where working conditions are, "unacceptable".

According FIVH, Menderes Tekstil, linen specialist , dismisses or threatens to dismiss its employees seeking to unionize. "It is also reported unsafe working conditions for health", the NGO said in a statement, which states that "in November 2008, a worker died".

Again, an NGO unknown to the general french public ventures to give lessons to our retailers. It would be interesting to investigate who is behind this NGO and what's its real interests .

Ecology and the vast distribution: The first tests of carbon labeling

2009-04-09T02:18:00.000-07:00

The preceding article was the supermarket of tomorrow and their services. I'll add here an important point. The supermarkets of the future will require their suppliers to the social and environmental performance of each product. At what you say but me? is the subject of this article. Happy reading

Above all it is important to know that an environmental law will be put in place by 2011.

This law requires the mass distribution of a new mode called carbon labeling.
Each product must contain the index of carbon emitted from manufacturing to distribution.

Thus the customer can know the total CO2 emissions equivalent to his wagon. This figure will also be incorporated in the next invoice price.
Today, many brands (Auchan, Leclerc, Nature Discovery and ...) have already begun to test the carbon labeling on most of their products.

The supermarkets of the future, the expectations of consumers on the distribution

2009-04-07T08:09:00.000-07:00

Today, there are many supermarkets (Auchan, Carrefour, etc. ..) each with its own brand name (eg Lidl: it is positioned on low prices and private label *)

Tomorrow, the pattern of competition between the supermarkets, consumers require their services several supermarkets today, are not widespread.

How to differentiate a brand from another in the market for mass distribution of the future? Here are some ideas:

- Security and monitoring of products:

Globalization very advanced in the world today, marked the arrival of foreign products with wide success. This success must of course be accompanied by a guarantee on product quality. French consumers are wary of shopping type Mottanai. Most of the French prefer to spend more for a quality product able to ensure their safety. (CF FOCUS contaminated Chinese milk in France)

- Price

We often think that the price is a major factor in the best case, if only most of the time, illustrating the fact that a large surface is to listen to these customers.
Today, it is no longer sufficient to have a position to convince price: it must certainly have competitive prices and attractive but also justify this by the decomposition of the price (some tests for security, for other associations " fair trade, etc ", purchase price and sale price" double labeling ").

- Promotions

In general, the major brands of distribution have already integrated the principle of loyalty marketing. The most reactive of them even carried over to their website to encourage their customers to take loyalty cards.
These actions are often highly valued and used by members of the 3rd age.

- The structuring of rays

Here is a PPT posted by intellego.fr

(To see the pptliens: http://www.intellego.fr/uploads/4/1/4150/files/L__implantation% 20marchandisage% 20en% 20GMS.pps)

The supermarkets of the future will continue their studies in the gain space of time of purchase to the consumer. Some brands have still not realized that over time the consumer goes to find their product, the more they increase the risk that it is not loyalty to these brands.

- Access for disabled

Finally a sign here that Auchan is developing a service tailored to hadicapé. The idea is simple, low part of the counter but allow foot to slip below to move side.
The logo "disability" is used in a glance to identify the facility that would have escaped my attention.
The idea is brilliant, super simple, costs nothing and makes life full of PRMs.

The supermarket of the future need to be adapted to all types of customers.

- Propose new ways to shop

Signs that succeed tomorrow are those that adapt to various needs of their customers to do their shopping.

If we take again a good example of Auchan, they have developed several ways of doing courses:

Internet:

- Home delivery: AuchanDirect

They have understood, some people have more time to their race and thanks to this new way to shop, these new types of people (often professionals) earn a lot of time to fulfill their course via the Internet. After passing the order on the net, they need only wait for their courses be delivered.

Semi-Internet

The races to go: AuchanDrive

In stronger, halfway between the traditional and the purchase on the internet, the purchase order is to take a list of courses and just pick them up after work for example.

The aim is also to develop new methods of procurement for these purchases make it possible for people who can not move, or those who live in a remote village.

-Cultural:

France is composed of several regions, each with their specific requirements. In the super markets of tomorrow, each store must have a cultural sensitivity depending on where it is located so that their customers can identify with them.

- Transparency:
The banner will happen to create an environment of transparency, production to sale of products has earned the trust of these clients. This entails establishing good relations with their producers and suppliers.

Welcome...

2009-04-07T02:11:00.000-07:00

Retail Core wishes the new hard discount retailer SIMPLY MARKET the welcome in France . This markis part of a policy of low prices and thus contribute to the diversity of offerings to consumers.

For those wishing to discover this new brand in France, they can visit their website - http://www.simplymarket.fr/index.php?rubrique=carte_france- and locate the nearest supermarket to home.

Cars ... LOW COST

2009-04-02T00:01:00.000-07:00

A very interesting article on the sale of automobiles in Germany by the hard discount LIDL was published on Monday 30 March on the site INTELCAR (http://intelcar.blogspot.com/). It is selling via Internet, and of course the French consumers could benefit in condition to go retrieve their vehicle in Germany.

This strategy could serious study for the French distributors, because it supports the purchasing power of the consumer, allows automobile manufacturers to maintain order books brands and distribution to diversify their products.

I also think, as the Germans have done, that this can be part of a process of economic patriotism provided French manufacturers and distributors agree.

Round 2 : Cospar VS Mass distribution

2009-03-31T19:59:00.000-07:00

Some elements of the article written on Retailcore on events caused by the COSPAR Réunion against large retailers:

Cospar raises the pressure on large retailers in the Reunion
A week after the event finally met the great distribution and COSPAR (The Collective of Trade Unions, Politics and associative Reunion) to negotiate the products know that a decrease in the shops of the Réunion.
It was after several hours of discussion that the two actors have agreed on a list of over 200 products.
From this discussion two new elements have emerged. The first of these is the fact that local producers have had the opportunity to participate in developing this list. The second comes when, once the agreement is signed, the consumer and with a better track signage shelf products targeted by COSPAR.
Large retailers aware of the impact of the crisis on the residents of the Réunion and appears to have taken reasonable steps in accepting the request of COSPAR.

Calm returned to the Réunion, here is an example of a good relationship between "union" and "mass distribution".

Carrefour's strategy is changing

2009-03-29T05:52:00.000-07:00

In 2008, Carrefour's profits fell by 44.7%. Lars Olofsson, the new CEO of Carrefour Group, doesn’t believe, consumers' expectations. Thus, in order to improve its image in terms of price and profitability, the strategy to increase 40% supply of labels (MDD) ie branded Carrefour products.

In fact, Carrefour is aligned with its main competitors who offer 50% of private label products against only less than 30% for Carrefour.

This is not without consequence; this shrinking market threatens the major brands. Olivier Desforges, president of the ILEC (liaison and survey consumption industries Institut), commented on the strategy of Carrefour: “Some (manufacturers) will disappear, as is already the case in some markets at the foreign”.

Cospar raises the pressure on the mass distribution in the Reunion

2009-03-23T06:12:00.000-07:00

What is COSPAR?

COSPAR is the collective of organizations, and political associations of the Réunion to defend the interests of the inhabitant of the Réunion island.

What they Claimed ?

The group claims a reduction of 20% on 500 items of consumption, and therefore calls on supermarkets to revise its tariff to the Réunion.

What happened?

We summarized these events in three parts

* Saturday 21 March, in the morning, activists of COSPAR proceeded to a sticking hypermaché Jumbo Score "of the Port. (The dam was removed in mid-day).
* In the afternoon, COSPAR to conduct a similar action at the entrance of the Leclerc supermarket Palissade.
* Sunday 22 March, members of the group drew up a dam to block vehicle access to the parking area of Carrefour Saint-Clotilde. With the approval of the management of Carrefour, the demonstrators entered the mall store and were able to express the reasons for their action. Members of the group left the scene in the quiet mid-day.

Result?

Large retailers will implement reductions of 5 to 14% 80 items including a third produced locally.

To go further.

What you should know is that the blockade had caused no disturbance of public order. The local population strongly sountenu this movement. Despite this great success, only 20% of the population has been consulted on the choice of products affected by these cuts.
What is sad is that our overseas departments are affected by the crisis with such virulence, causing such an impact on consumption they are forced to do their own lobbying to reduce the prices.

Source : www.temoignages.re

Large retailers must display better prices

2009-03-18T13:53:00.000-07:00

Following the decrease in raw material prices, the Secretary of State for Consumer Affairs Luc Chatel, again called upon the leaders of hyper and supermarkets to lower prices in their stores. The leaders have tentatively agreed, promising to renegotiate with their suppliers.

For distributors, who are the end of the chain before the consumer and which are most often designated as the beneficiaries of rising prices, do not show more transparency in the display of prices, with the computerization of commands, this should not be complicated labeled indicating the margin of each of the intermediaries.

The consumer would have useful information, like for example:

Producer = a
Supplier = a + b = c
Carrier = c + d = e
Distributor = e + f = final price

This transparency would highlight the true beneficiaries of rising prices.

Merci, the charity shop

2009-03-14T02:40:00.000-07:00

In addition to the previous article ..... Thank you is the name of a new store located at 111, boulevard Beaumarchais, 75003 Paris. The two creators of the project (Marie-France and Bernard Cohen), have reinvented a loft of 1 500 m2 near Bastille and offer exclusive designs at price designed by famous fashion as (Yves Saint Laurent, Stella McCartney, and .. .) and decoration. All profits will benefit humanitarian associations working for the children of Madagascar and India, where every five minutes a child dies of malnutrition. This store does not necessarily "good business", since the aim is to make donations, making the concept a little too bobo! Thank you is broken into a multitude of offers: shop, museum, florist, books, charity. The premises are very design (large frescoes are painted on walls), which calls into style before India and Madagascar. After this crisis period, with the slowdown of the donations, here is an excellent initiative that Retailcore welcome. "This project was born of a dream, the story of a new life that begins with him, with you, with all who will open sesame to thank you, promise." Source: Thank you
> permuter

Consumer credit until when?

2009-03-11T08:05:00.000-07:00

The French government is preparing a draft law on inter alia the duty of individuals’ information and accountability of credit. This project should be submitted at the end of this month.

Distribution sector carefully monitor this bill because the supermarkets for several years promoting consumer credit across different products. Despite interest rates in most cases very high, these loans have proved very popular with the public. Dealers justify their approach by citing their role in society and in providing practical assistance to consumers, especially in these times of declining purchasing power.

The President of the Fédération du Commerce et de la distribution (FCD), Jérôme Bédier was declared as opposed to any "action against the consumer credit."

My opinion is divided: while consumer credit may be considered as a valuable tool for consumers, provided they are balanced by offering reasonable interest rates. Especially consumers must be fully informed with clear and visual timeline of their refunds.

The French destockage hunted by the repression of fraud

2009-03-05T07:20:00.000-08:00

This article is a continuation on the mottainai of Japan. The French stocks is presented here as the Japanese equivalent of mottainai. The goal is to sell products that have not sold in supermarkets.
They are sold at very low cost and are often characterized by exceeding the time limit for use (1).

In Japan, the strong impact of the crisis on household consumption that has mottainai well. In this analysis I put forward the fact that such practices can not flourish in France by the rigidity of the legislation on food.
These small price to ensure the success of brands as a leading French Noz from storage (or Bravo business, and O'Merchato Farm Spahi) are subject to special attention from the Directorate General for Competition Consumption and the Repression of Fraud (DGCCRF) that launches an investigation. According to one member, Jean-Luc Ambrose, there were many "alerts on deadlines for optimal (DLUO) frequently exceeded. "
Exceeding the DLUO is not illegal but DGCCRF verifies exceeded the deadline for the consumer it is illegal and dangerous to the health consumer. We will keep you informed of the outcome of the investigation. Mais s il s’avère que les entreprises de déstockages joueraient avec le feu, alors on ne pourra pas dire que Retailcore ne les auraient pas prévenu.

(1) date (DLC). It applies to highly perishable foods that can quickly become a danger to human health. This caution is expressed as "Drink until ..." on the pots of yoghurt, the charchuterie fresh, fresh prepared meals, etc.. "Always that date and do not consume a product expired" prevents fraud crackdown. Please note that these products must be withdrawn from sale when the deadline is reached.

Deadline for optimal (DLUO). Once the date passed, expressed by the words "best before ..." foods bearing these words are not dangerous to humans. However, they may lose flavor. These include coffee, pastries and some dry food diet, etc..

Is Leader Price victim of usurpation?

2009-02-28T03:36:00.000-08:00

According to the website LSA, a commercial website recently created, Leader Price Media, would use illegally the low price distributor’s brand Leader Price. By carrying out some research on the owner of the domain name, it seems to be a contractor of Bouches-du-Rhône in South of France. The phone number associated with this person is not allocated any more by France Telecom. We have thus the right to ask us questions about the legality of this Internet site.
As a precaution, I want to repeat that it is an information to be taken cautiously but it is true that all this appears suspect.

As you can see it on the two brands logo, they look like the same but the copy remains coarse.

Moreover, according to LSA, Leader Price refutes any link with this commercial Website and would conduct an inquiry in order to understand this situation and to see whether there is brand usurpation.
In any case, the commercial site Leader Price Media made a success of his objectives which were to be confused with the logo of the true store Leader Price, thus creating a feeling of brand awareness.

Source: http://www.lsa.fr/exclusif-lsa-un-site-pirate-utilise-illegalement-la-marque-leader-price,104124

Threats on Carrefour

2009-02-25T01:20:00.000-08:00

Carrefour has been the victim of serious threats for weeks now. Cards with skeletons on them have been put among the goods in the supermarkets. But today these threats are getting more and more serious, a a woman brought a letter to the shop settled in Venissieux, France. This letter asked for 800 000 euros, or some people would bring poisonned food in the shop.
Carrefour is absolutely not making fun of the threat, as they increased the number of people to monitor what is going on in and around their supermarkets.

I tried to reach someone at the HQ, but no one wanted to answer any of my questions about this issue. Indeed, an enquire is on tracks, so they will let us know the result, but nothing before the official stuff!

A barely concealed attack ...

2009-02-23T01:54:00.000-08:00

This week in the French daily press, a publicity of Mousquetaires INTERMARCHE entitled "It’s enough! " occupies a whole page. This ad denouncing that some of the competitors of this retail group, who, in order to win the race of low prices, don’t hesitate to cut prices just the time of the survey exercise.

Main competitor targeted by this ad is the distribution retail E. Leclerc and his website http://quiestlemoinscher.com comparing prices between large areas (see article on this site of December 25th 2008).

Therefore once again that the consumer makes his own opinion without relying on the accumulation of misleading advertisements.

The Packaging

2009-02-16T00:19:00.000-08:00

Given that the majority of purchases are made in supermarkets, the packaging is used to differentiate one product (brand) of its competitors. Beyond its technical functions (facilitating the conservation, storage, transport, ...), the packaging is a marketing function. According to a recent survey, the attraction to a product in a booth has caused:

- For 35.5% of the packaging
- For 26% the price
- For 20.5% reminiscence (recall in memory)
- For 18% by a particular aspect

Therefore, the packaging is more impressive, the more it attracts. But at the expense of adverse effects to the environment because today, 700 million over 6 billion inhabitants consume fifteen times more packaging than the rest of the planet. In addition, the packaging leads to an increase in prices.

Faced with this, large retailers would have an influence to their suppliers to reduce this harmful practice. The consumer and the environment would be better.

The fair trade hypocrisy (2/2)

2009-02-10T03:45:00.000-08:00

Last week, I had written about the fact that fair trade was not as equitable as it claims to be.
To review this article, please click on this link : http://retailcore-en.blogspot.com/2009/01/fair-trade-hypocrisy.html

Today I decided to approach fair trade by the retailers view. As you know it now, a product with the fair trade label is on average 10% more expensive than a traditional product. Moreover, these products are a growing success today. The retail sector needed to benefit from this occasion to make even more margins and profits.

Indeed, if the products resulting from fair trade are so well positioned in the departments in stores (approximately in middle height), it is because they are more expensive than the traditional products and especially because they bring back more margins. We should not seek further: increasing turnover and margins = increasing profits for retailers.

Distributors own brands (DOB) also try to benefit from this label. It is particularly the case of Monoprix and Casino, which are very present on this sector for all kinds of products. Let us take the example of the chocolate: Monoprix, Auchan, Champion, Carrefour and Casino have each of them chocolate with the label "Max Havelaar". Let us not seek hypocrisy further.

Unfortunately, one should not make us believe that the retailers worry about the margins of producers. It is of course a strategy to make even more profits. Moreover it is the goal of each company. So we cannot blame this.

Guadeloupe facing the economic crisis

2009-02-10T02:19:00.000-08:00

The island has been on strike for weeks. The organization Lyannaj kont pwofitasyon (LKP) is leading the protest, and the strikes are getting more and more violent. French government member in charge of the issue, Yves Jego, was sent to the island in order to solve the problem, et flew back to France on Sunday, which surprised the population. Therefore, he promised to cut the price of a hundred of “goods of first necessity” by 10%, and works on the revendication to raise the minimum wage of 200 euros.

Since he left the island, the movement has gotten tougher, and all the stores were closed on Monday, day of “dead Guadeloupe”.

Retailing is also being a victim of these protests: stealing, vandalism, destruction, occupation of the stores… French TV news talked a lot about that. These retailing companies have closed since the crisis was triggered, around January 15^th, and only little stores are still on tracks.

There are many explanations to the problem. First of all, on the cultural point of view, Guadeloupe has always been reluctant towards France and the French people, wishing for more autonomy. Then, prices in the DOM-TOM are far higher than in the main land while wages are not. The government cannot practice the same prices on the main land and on the islands, as the price of transport has to be taken into account. But raising the minimum wages does not seem to be the best way out of the crisis, as bosses will have to raise their prices in order to pay their employees… Maybe the whole thing would start with a valorization of local products, if local producer can handle it.

When a European law?

2009-02-03T04:59:00.000-08:00

While suppliers are forced by the supermarket brands to accept to sell their products at low price, consumers are not expected back until the prices continue to rise. Retailers can afford as they are a monopoly and at a national level, Carrefour, Auchan, Casino, Leclerc and Intermarche have split the market. This phenomenon is not exclusive to France, the 27 EU countries are concerned by the effects of the concentration of supermarkets.

Therefore consumers expect a response from European bodies. Although a survey was conducted by the European Commission, the findings of this study expose comfortable margins that distributors agree to the detriment of suppliers and consumers. But for now, no concrete measure, no regulation has been proposed to protect consumers and producers of the dominant position of retailers. It is both to bring the legislation to fit the mass distribution.

The "mottainai", the Japan's food answer to the crisis.

2009-02-02T14:14:00.000-08:00

Background

Japan is a country of gourmets, renowned for knowing how to obtain bottles of wine and the foreign products to gold price, and its adaptability to the economic difficulties facing Japanese homes are facing.

Indeed, the Japanese are also affected by the global economic crisis. This has a direct impact on their consumption. Motr the country is falling into crisis, the less the Japanese consumers are concerned about the quality of products.

The first to have identified this change in consumption in the Japanese families are local shops. They have developed a new product called "mottainai" which means "it's wasteful".

The new concept of "hard discount", the mottainai

Local shops selling dusty cans, soda bottles with visible deposit , or food, most of which have been removed from sale in the mass distribution (supermarkets, hypermarkets, etc.).. In these stores, they offer all kinds of products for about 60 yen (50 euro cents).

The characteristic of this concept is that foods exceeding the recommended date of consumption but not expiration.

In Japan, the company Itochu, which specializes in mottainai on the Internet, hopes to generate 10 billion yen (83 million) turnover in three years with his site.

This concept is anti-adaptable it in France?

=> Impossible

I wonder if the causes of this impossibility of thinking rather come-immutable - French consumers too attached or too accustomed to their quality of life of French laws on product quality.

Nevertheless, this kind of initiative in France, before even thinking about the legal dimension, or the response of consumers, surprised many.

And you, do you think we can see a days such goods in France? Will you use this kind of products?

The fair trade hypocrisy (1/2)

2009-01-30T02:40:00.001-08:00

The press speaks more and more about fair trade: the products resulting from fair trade are new actors in the retailing sector. The products are more expensive than the products known as "traditional". But is this really in order to remunerate better the producers?

At the beginning, the fair trade starts from a good attention because it was created to remunerate better the producers so that they can continue to remain. But this idea will generate certain threats. Indeed, the low volume of production involves an increase in the transport costs because it is impossible to make sufficient economies of scale. Moreover, there are other costs compared to the traditional products like the costs of certification and communication.

It is noticed that the consumer is completely manipulated because when he buys a fair trade product, he pays a symbol; symbol which is approximately 10% more expensive than a traditional product. According to some studies of the French Agricultural Research for Developing countries (CIRAD), "the share of the price of a fair trade product which is allocated to the producer… is weaker than for traditional products".

Finally, we can wonder if either the consumer is not informed of this hypocrisy, or it knows it, but it wants to give itself a clear conscience.

Next week, I will give another view about the fair trade hypocrisy. This time it will be about the professionals of the retailing sector.

Less transparency in the price of meat

2009-01-29T11:21:00.000-08:00

According to an article to appear for UFC-Que Choisir, the price of meat in French supermarkets increased significantly in the last fifteen years, while the purchase price from farmers tend to decline.

The survey compares prices between 1990 and 2008 and the results speak for themselves:

- For the beef: the prices in supermarkets increased by 50% while the purchase costs among producers fell by 15%.

- For the pork: the prices in supermarkets increased by 40% while the purchase costs among producers fell by 20%.

- For the poultry: prices in supermarkets increased by 30% while the purchase costs among producers rose only 15%.

Thus, large retails that hold a virtual monopoly on the sale of meat in France (80%) should be more transparent on their margins. The consumer must be informed of this situation and the reason for the large retails of their margins ...

Ends of the organics

2009-01-25T10:04:00.000-08:00

Before to show you a podcast from a radio broadcast describing our problem, I would like to trace the content of an article published in Nature in France in 2006:

"The European Commission has recently proposed to amend regulations concerning the method of production and bio preparation, in order to make it clearer for consumers and the industry, but also to facilitate free trade in Europe . Intended to be implemented in 2009, this bill very discussed should be adopted by June this year, leaving little time for professional organizations and consumers to respond.

Indeed, if the project offers some advanced rules for organic wine, or the possibility of exempting smaller distributors bio cost control, in general it calls into question the foundations of organic farming . Thus, if adopted, would chemistry its entrance with the possibility of using pesticides for crops, and use of allopathic medicines for animals. In addition, with this text, the European Commission would bring GMOs in the Bio, tolerating a level of pollution by 0.9%. "

Here is a podcast of a radio extract on 26 December 2008.

This excerpt relaunch the debate launched in 2006 but this time the threat of the reform of biologic specifications is imminent. What is at stake is the entry of GMOs in Europe (genetically modified organism) and the withdrawal of the subsidiary Bio.

This post is intended to warn you about this danger, which requires short-term support of engaged consumers.

Abrogation of the Royer Law

2009-01-23T07:06:00.000-08:00

This law dates back from December, 27th 1973, and was created in order to protect little shops from big retailing firms, that had to meet different criteria to get the right to expand or create new buildings. They had to ask for an authorization if the retailing surface was over 1000 square meters in a city of less than 40 000 inhabitants (1 500 sqm for more than 40 000 people). Since 1996, retailing companies had to ask for this authorization at the “Commission départementale d’équipement commercial”.

The 205th proposal of the Attali Report proposes to abrogate this law. Brussels considers that it hinters free installation. The government first thought about it last summer as part of the law for the modernization of economy, but it lat retailing companies do all they wanted. So the parliament stopped it, and thought about it again in October.

UMP (right wing French Party) MP Jean-Paul Charié was charged by French president Nicolas Sarkozy to write a report that could end up into a law. This law should be abrogated little by little, according to the publication by each department of a document of commercial activities orientation. The opening of new shops would only depend on urbanism, with building permits.

Carrefour goes into corner stores

2009-01-21T14:31:00.000-08:00

The first Carrefour City opened its doors in the 16th district of Paris. This store will have as characteristics to be relatively small (approximately 410 m²), to be located in town centre and to have opening hours adapted to the urban life (6/7 days of 7:00AM to 11:00PM). This "mini-market" will be composed of 3 distinct areas:
o snacking and ready-made meals
o traditional products
o relaxation area at the store entrance (microwaves, coffee machines, bar and chairs)

That shows that Carrefour tries to widen its horizons by deciding to target the urban population who does not want to move out to the downtown areas to make its purchases.
It is a premiere in France but Carrefour had already tried out this system in Brussels since a similar store had opened in September 2008 on the Chaussée de Charleroi.
Carrefour thinks about opening two other Carrefour City away from Paris:
o in Nimes on January 23rd
o in Avignon on February 4th

I have personally tested out it in Belgium and I can say that it is a very good system for the people who do not wish to make haute cuisine. But the store sells interesting number of products.

Carrefour to open 28 new retail location in 2009

2009-01-20T06:41:00.000-08:00

Despite very bad results for year 2008, the french ‘s giant retail company carrefour announce the creation of 28 new market in China for 2009.

Carrefour has already launch a profit warning for year 2009, explaining that this exercice won’t be better than the 2008 because of the global economy slowdown. Carrefour is also afraid that Tesco, the third global retailer which is better implant in BRIC area take the lead on Carrefour.
During 2008, carrefour opened 22 hypermarket in China, we can assist to an increase of power of the french implantation on chinese soil.

Despite a strong economy slowdonw, carrefour which is badly affected by the crisis continue to invest on the most profitable market and in the same time restructur his activities in Europe where hypermarket attract less and less customers in profit of small local retail center.

Are chinese investment going to save carrefour’s world second place ? Carrefour is facing a lack of influence in India, country whithout which it can’t pretend to be such a world leader.

Tesco has strong chances to win this battle.

La grande distribution au Vietnam

2009-01-19T10:33:00.000-08:00

Le Vietnam est arrivé premier des marchés émergents en termes d’attractivité pour les distributeurs mondiaux du Global Retail Development Index 2008 (GRDI), réalisé par la société de conseil AT Kearney. Ce classement consacre l’ouverture récente du Vietnam où plusieurs enseignes de grande distribution alimentaire sont présentes. Parmi ces enseignes certaines sont vietnamiennes, comme Fivimart et ses 16 magasins. Saigon Co.op, aussi, créé en 1998 qui compte aujourd'hui 34 supermarchés et qui prévoit d'en porter le nombre à 100 en 2015. Pour les groupes étrangers, le français Casino implanté en 1998 y possède sept magasins de l’enseigne Big C. Implanté en 2002, on compte 8 Metro au Vietnam.
Pour la mission économique de l’ambassade de France au Vietnam, la distribution au Vietnam devrait évoluer principalement dans deux directions : "la montée en gamme des centres ville, ouvrant l'accès à des biens jusqu'à présent peu ou pas distribués au Vietnam et l'expansion des chaînes de grandes surfaces généralistes ou spécialisées".
À l'approche du Têt, qui consacre traditionnellement une forte hausse des prix, l’engouement des Vietnamiens pour ces lieux de distribution se fait sentir. Comme l’explique M.Hang client du Fivimart d'Hanoi "même si les prix sont un peu supérieurs à ceux des boutiques de la rue, la qualité est toujours assurée". Dans la mégapole du Sud, Ho Chi Minh, les supermarchés sont aussi bondés. Il faut dire que les grandes surfaces font preuve d'imagination pour attirer les clients en proposant des spectacles gratuits, des promotions sur certains produits. "Nous baissons nos prix sur plus de 500 articles d'ici à dimanche prochain. Nous sommes aussi engagés à ne pas augmenter les prix de certains produits. Toutes les marchandises de première nécessité sont prêtes depuis 2 mois, les stocks étant pleins", fait savoir Duong Thi Quynh Trang, directrice chargée des relations extérieures de Big C. Même son de cloche du côté des supermarchés Saigon Co.op qui prévoit suffisamment de stocks pour pouvoir baisser les prix des produits de première nécessité de 5 à 10%.

Sources:

http://www.missioneco.org/vietnam/index.asp

http://lecourrier.vnagency.com.vn/default.aspxt=XT33&ct=CT49&page=newsdetail&newsid=49120

Retailers are recruiting ...

2009-01-18T08:53:00.000-08:00

To address the current crisis, many general companies are tempted to dismiss. In contrast, those of retailers still have a large dynamic hiring. Carrefour, for example, in 2009 will hire 45,000 people, including 600 managers and 15,000 fixed-term contracts. All figures on the other distributors are available on the web site of challenge to the address below:

http://www.challenges.fr/classements/entreprises_recrutent.php

Crisis and balances, a risky rescue.

2009-01-17T08:44:00.000-08:00

Started in France on January 7, the balances are, for a large number of shop, the last chance to save a 2008 year-end catastrophe and to guard against an early 2009 rather badly engaged.

Whether England with sales up 70% at Harrod's or France with discount - 90% in Brandvalley, dealers expect a lot from these sales.

It seems that this year it will be the most affected areas of fashion and Hi-Tech that will offer more opportunities. With a decline of -5% for the month of December on the textile sector in France, signs will definitely need to get rid of their stocks.

Finally, consumer's reaction remains unknown. They continue to tighten their belts and they eagerly awaited the start of the sale to make their purchases. The response in 5 weeks ...

Carrefour, the second best retailer in the world

2009-01-14T09:35:00.000-08:00

According to the study by Deloitte, Carrefour reaches the 2nd place ranking of the 250 largest retailers with a turnover of 112.6 billion dollars. The French group is still far outpaced by the U.S. giant Wal Mart (375 billion dollars in sales in 2007). Tesco is English (95 billion dollars in sales) who completes the podium.
Even if the top three is unchanged from 2008, the 2009 edition of the Champions distribution reveals many changes. Deloitte noted that discounters are benefiting from the economic crisis and lower consumer spending. Thus, the German group Schwarz (owner of Lidl stores) has won three seats compared to the previous edition and is the 7th ranking. His compatriot Aldi (10th) joined this year's top ten.
Another major trend: the rise of distribution groups from emerging countries. "Four of the six distributors have experienced the strongest growth in five years come from the emerging countries," says Deloitte citing the example of Russian specialist electronics Euroset. Between 2002 and 2007, the turnover of the retailer rose by 108.5%.

When food kills

2009-01-13T07:32:00.001-08:00

In March 2008, the Paris Correctional Court dismissed the committee Salines de France, which continued for defamation Pierre Meneton. The latter had accused of minimizing the risks of excess salt on health. It is a rare victory, that of a whistle-blowers. Pierre Meneton, a researcher at the National Institute of Health and Medical Research (Inserm), was pursued by producers of salt. They accused him of having defamed by accusing minimize the risk of excess salt on health.
The remarks reported by the salt from France (FSC), a union where the majority of French producers of salt, dates back to 2006. Pierre Meneton had said in an interview with the monthly TOC, that "the lobby of salt producers and the food sector was very strong" and "lies” health professionals and the media."
The article, titled "Food Scandal: salt, defect, was accompanied by a box of salt containing the words" salt kills ", comparable to that found on cigarette packets. The journalist who wrote the article, Pierre Cattan, and the director of the publication of monthly, Arnaud Champremier were also prosecuted. Asserting that "the lobby of salt producers and the food sector was very strong" and "disinformation health professionals and the media" about the risks of excess salt on health is not defamatory. This was decided by the Paris Correctional Court, in a case between the Comité des Salines de France (FSC) to a researcher at the National Institute of Health and Medical Research (Inserm).
The genesis of this case is instructive as to the means employed by a group of professionals to protect his business, even ignore health considerations proved. When the researchers from Inserm, Pierre Meneton, dared, in an article published in 2006 ( "Scandal food salt, defect"), drawing attention to the consequences of excess salt in food the union of French producers of salt drew artillery judiciary. And therefore lost.
It is not so much that the salt sprinkled on food that is in question, the salt hidden in all prepared foods manufactured or processed by the food industry.
Why so much salt? Because it is a good conservative, a flavor enhancer, it improves the taste and appearance of food. It is, therefore, pervasive in our food. Even where, apparently, it has nothing to do chocolate, biscuits, yoghurt and dairy desserts, soft drinks and jars ... baby.

According to a survey measuring the dietary intake of sodium, bread, crackers, sausages, soups, cheese, dishes, pizzas, quiches and savory pastries, the pastries, condiments and sauces and pastries are top ten "vectors of salt with more than 80% of daily intake.
The results show an average of between 8 and 10 grams per day, which corresponds closely to the standards set by the World Health Organization but is still under the U.S. medical journal New England Journal of Medicine recommends that not exceed 6 grams per day (one teaspoon).

AFSSA (French agency for food safety), does not rule in the short term for a general reduction of salt consumption, the evidence that high intakes of sodium are harmful to healthy individuals n has not been made.
A high intake of salt can be harmful for hypertensive, obese and heart failure.
Lack of scientific certainty on the optimal consumption of salt, public campaigns about the dangers of salt are not on the agenda. Other public health issues such as tobacco, alcohol and obesity are much more worrying.
He remains in France, seven million people suffer from hypertension (voltage above 14 / 9) that taking drugs is not sufficient in itself to deal with.
Too much salt is affecting not only blood pressure. It also aggravate osteoporosis, increase the risk of stomach cancer and could even affect the cardiovascular system.
Although lacking certainty, the general interest is to eat less salt. The difficulty in putting this principle into practice from what we have no exact knowledge of the salt content of food trade, labeling information only on the presence of salt, not quantity.
Therefore, the common sense to consume less of foods high in salt, to give preference for fresh products, manufactured at home and have the main light to salt food.

The Classification of emerging countries in terms of retailing potential

2009-01-12T14:45:00.000-08:00

Every Year, the management consulting firm AT Kearney publishes its GRDI (Global Retail Development Index) classification which evaluates the attractiveness of emerging countries according to 4 criteria :
o Country Risk
o Market attractiveness
o Market Saturation
o Time Pressure

This is the top-10 of GRDI classification

For the first time, it is Vietnam which occupies the first place of this classification in front of India, Russia and China. That can be surprising to find Vietnam in front of these 3 large countries but the country represents a real opportunity for the world distributors since the deregulation of the retailing sector.

Development of mass market in Morocco

2009-01-10T10:59:00.000-08:00

Moroccan trade structure is still largely dominated by traditional business, but the supermarkets gradually gaining market share. Absent some ten years, they now represent 10% of retail. Mass market in Morocco appears as a growth area and the number of outlets increasing at a sustained pace.
The supermarket chain Label'Vie, with 18 large stores, a subsidiary of Best Financial Holding, will open three new hypermarkets in Morocco. These openings refer to the strategic plan for the period 2008-2011, which provides for the number of stores to 40. In 2007, several shareholders of the chain had defected from the hedge fund and Cyrus Capital banker Othman Benjelloun, who create the chain of supermarkets Hanouty.
Label'Vie is number two in Morocco behind the ONA which operated until 2007 with Auchan hypermarkets Marjane (17 stores) and supermarkets Acima (25 stores). In third place comes Assalam Aswak who has 7 hypermarkets, but the opening will bring the number to 15 by 2012, with an average of the opening of 2 stores per year.
Makro, a representative of the German Metro, which is focus on cash-and-carry with eight stores. The hard-discounters BIM (Turkey) and Lidl (Germany) are followers, like Carrefour, which seeks Moroccan partners.

reliable assessment classification signs distribution

2009-01-09T05:35:00.000-08:00

In April 2008, at the World Retail Congress held Barcelona, Interbrand revealed its classification labels of the most successful at European level. Carrefour ranks 2nd place and in the first place great brands of food distribution.

Below the rank of Interbrand 'Europe's Top Performing Retail Brands 2008 "

1 H&M Sweden
2 Carrefour France
3 Ikea Sweden
4 Tesco UK
5 M&S UK
6 Zara Spain
7 Aldi Germany
8 Boots UK
9 El Corte Inglés Spain
10 Auchan France
11 ASDA UK
12 MediaMarkt Germany
13 Lidl Germany
14 Edeka Germany
15 C&A Netherlands
16 Sephora France
17 The Body Shop UK
18 Argos UK
19 Mango Spain
20 Sainsbury’s UK
21 Kaufland Germany
22 Mercadona Spain
23 FNAC France
24 Rewe Germany
25 Carphone Warehouse UK

More information is available on http://www.lesechos.fr/medias/2008/0411//300256526.pdf

We await the rankings in 2009 to see if there was a crisis symptom ...

Woolworths, The end of a giant english retailer

2009-01-06T02:40:00.000-08:00

For two days, we could see on the streets of Brixton, one of south London, a display of a countdown indicating: "More than two days," 70% discount "," All must disappear. "

Indeed, tonight Woolworths will end his reign. This great institution of the British distribution for over a century has marked the commercial landscape of the United Kingdom is today in total liquidation . More than 800 stores will close their doors forever this evening and 30 000 jobs will disappear.

This is not a surprise, already in 2008, the ravages of the crisis had with more than twenty-nine retail chains into administration. This concern continues with the announcement of the bad result of Marks & Spencer, Debenhams, Home Retail Group and Next; bankruptcy of dozens of so-called moderate (approximately 200 stores) in January.

Those who have limited the damage are the discount chains such as Albi, Lidl and Primark increasing their market share by attracting middle-class now.

As elsewhere, the only winners of this crisis are sales distributors via the Internet continues to rise.

The advisory group Deloitte, administrator, is always looking to sell, in each case, some of the shops whose location could interest other labels as Sainsbury's, Asda, Tesco.

Russia : Next step of confrontations between the leaders of retail industry

2009-01-05T00:35:00.000-08:00

Russia is one of the emergent countries in the distribution sector. Indeed, the turnover of the sector was already of 200 billion dollars in 2004 and could reach 500 billion dollars in 2010. This market attracts more and more the world leaders such as Carrefour and Wal-Mart.

Moreover, the local actors are still very present in this sector either via small shops of districts, or via supermarkets and other hypermarkets. The German distributor Metro is the only one among the 10 larger world distributors to be established in Russia. Currently, Wal-Mart and Carrefour are not yet present in Russia but it would seem that the two giants are decided to attack this market in a near future.
Indeed, Carrefour should open during 2009 its first hypermarket in Russia in a shopping mall of Krasnodar (southern of the country). An agreement with the governor of Krasnodar gives a report on an investment of Carrefour of 100 million dollars over 5 years to open several hypermarkets, supermarkets and other structures in the area of Krasnodar. Carrefour is looking also on russian distributors in order to purchase shares and to be more present on the market. One of them is Lenta. Wal-Mart is also in race in order to take the control of the russian distributor Lenta.

If Carrefour manages to leapfrog Wal-Mart on this point, the french multinational could finally restore its former glory after several failures such as India. To the contrary, if Wal-Mart wins this battle, the American giant will enter easily the Russian market.

From CONSUMER to CONSU- ACTOR

2008-12-24T16:47:00.000-08:00

In France, INSEE confirmed the 0.2% increasing of the index of prices in supermarkets for the month of NoveImber. On one year, this index has rise to 4.2% against 1.6% in November 2007. In these times of crisis, prices comparative sites between supermarkets are useful for consumers to help buy cheaper. The most comprehensive of these sites in term of number of products compared is certainly http://quiestlemoinscher.com/.

However, we must take precautions to use it because this site is hosted by the Leclerc group which naturally tends to favourite its products. However, other comparative sites are easily exploitable, allowing consumers a choice in its most significant purchases. From consumer to consu- actor...

Folder Wal Mart in the World : OPA on D&S a Chiliean retailer

2008-12-22T09:39:00.000-08:00

To start the folder "Wal Mart in the world," I wanted to offer a brief that seems the best way to characterize the international politics of the giant supermarkets. Wal Mart is launching a takeover bid for the Chilean D & S retail company Monday December 22 2008 at 9:00 am local time, Wal Mart officially launched a takeover bid for the largest supermarket chain in Chile. This should be achieved during the Tuesday 23 December. Chile is one of Latin America country who have developed a true culture of large hypermarkets as in the U.S.. This market remains one of the most competitive of the continent. The takeover highlights the willingness of Wal Mart to strengthen its presence in the world. At the opening of the Chilean stock exchange Monday, heading D & S rose by 28% to 250 pesos per share. The impact of giant causes a shock wave in the environment of the Chilean supermarkets. How will they be able to prevent this giant to seize market knowing that they have huge sums of investment?

Major retailers involved in the GREEN BUSINESS

2008-12-15T07:59:00.001-08:00

This week, the Auchan group welcomed its new headquarters in Villeneuve d'Ascq. The latter was built in an entirely environmental demarche. Major retailers increased in recent days a lot of signs of environmental protection; Carrefour created structures closest to the consumers (Carrefour Contact) so that they are not obligated to use their vehicles. Casino promotes carpooling to these customers. Jerome Bédier, President of the Federation of Commerce and Distribution announces the abolition of plastic bags by 2010.

It would appear therefore that there would be an ecological link between the major distribution companies and their customers. This doesn’t omit that this effort must also be realized between retailers and their suppliers ...

Lars Olofsson : the new CEO of Carrefour

2008-12-08T08:45:00.000-08:00

Carrefour, 2nd world actor retail industry, announced on November 18 the nomination at the post of CEO of Lars Olofson, 56 years. He will take the leadership of the group on January 1, 2009.

Carrefour weakens by the current economic crisis

Carrefour has difficulties because of the current financial and economic crisis. Indeed, the sales in France decreased approximately by 5,7% this year. Moreover, Carrefour always makes about half of its turnover in France (48%). This dependence is not encouraging at all when it is known that the french household consumption decreases because of the current economic and social context. And with the fall of the CAC40, the Carrefour security moved back of more than 40% since the beginning of the year 2008.

José Luis Duran (future ex-CEO)"picks up the pieces" and will be replaced by the Swede Lars Olofsson. His main mission will be to improve the position of Carrefour in France and especially to decrease this "French dependance" by actively persuing the international development of the company.

Who is Lars Olofsson?

Lars Olofsson, 56 years was to now the director of the strategy, the marketing and the sales of the Swiss group Nestle. Moreover, it passed the essence of its career within Nestle.
He entered Nestlé in 1976 as product manager of Findus. Then he was named in 1981 in Nestle France and there occupies various sales and marketing functions. In 1992, he becomes general manager of Findus France. Three years later, he takes the head of the Scandinavian activities (Sweden, Norway, Finland, Denmark) of the Nestle group. In 1997, he returns to France to become General manager of Nestle France. He will leave this job 4 years later to become Director of Nestle Europe before occupying its last position at Nestle: director of the strategy, marketing and the sales.

He will bring his knowledge about negociation between suppliers and retailers and will consequently facilitate the business between Carrefour and its mai supplier Nestle.

Taking into account the current economic situation, Lars Olofsson will not have much breathing space to successfully fulfill his mission and bad results could weaken the title in the stock market and tensions can appear with its main shareholder Blue Capital who holds nearly 14% of the French group.

french website Cdiscount launches its free VOD service

2008-12-08T06:20:00.000-08:00

Cdiscount has just launched its offer of free movie downloading. To set up this service, the website was sponsored by the radiostation NRJ. After he dowloaded the movie, the client can watch it for a couple of weeks. Since December 3rd, four movies are available on the website, and there will be three more by next week. To use this service, the client will just have to suscribe to the site, and as a consequence to its newsletter, that could potentially drive him into buying something online. The fact that the number of movies available is really low could be a strategic choice, as the website also sells DVDs.

The site ensures that it "has bought the rights of the movies that are proposed on free downloading on the website. By buying these rights towadrs producers and retailers, Cdiscount makes sure that the people concerned will be fairly retributed, which is not the case when these movies are illegaly downloaded.". The firm has a contract according to which each movie can be downloaded 30 000 times. After these 30 000 users, the movie will no longer be available.

A Mass Market retailers /Mobile telecommunications companies agreement on the payment of goods by mobile phone.

2008-12-04T23:58:00.000-08:00

On 2 December 2008, the distribution giants including Carrefour, Auchan and Intermarché and the three main mobile telecommunications companies, Orange, SFR and Bouygues Telecom have signed an agreement to complete the implementation of payment by mobile phone in participant shops. Tests will be made from Christmas 2009 that will allow customers of the three companies to pay their purchases contactless via their mobile phone. Since November 2007, the technology is being tested in two French cities: Caen and Strasbourg. The main obstacle to its development was the need of an agreement between mains players around a common technical solution and a profitable business model. We need, for example, to ensure the universality of the technology to avoid the Japan case, where the technology has developed rapidly, but where the offer is proposed by a single company NTT DoCoMo. The French agreement appears as a "sacred union" between the competitors. It demonstrates the importance of the issue.
The used technology NFC-type, for near field communication uses the functionality of the mobile phone interactivity. It may be used to exchange information in short distance by three modes: emulation card, peer to peer and reader.

In the area of Mass Market, this new use of mobile phones is a revolution in sales and marketing. Required to provide more information on products, stores may dematerialize labels, notices and even offer customized-promotions to their customers. By approaching their mobile phones near a contactless spot customers will obtain product information. The payment by mobile phone should flow transactions. In addition, the economic model chosen wouldn’t include additional cost for the seller. These cost will be on customers who are using payment by mobile.
To be adopted, this mode of payment should provide a substantial advantage, especially because the French culture is hard to change. We all remember the fiasco of Moneo. For customers, the use of mobile phone as a means of payment seems appropriate to the expenses of daily life. Exit coins, blue cards and loyalty cards. The mobile phone, which many of us keep near, will do it all. The success of this new method is likely in a country where almost 80% of French people aged over 15 have a mobile phone. However, customers will have to change their mobile phone. Nokia, Samsung and LG, the most advanced manufacturers announce the arrival of terminals for Fall 2009. An estimation indicates that in 2011 one third of sold mobile phones worldwide should be equipped with a contactless microchip, for transactions amounting to 34 billion of dollars. Remains open the question of the security process. In the event of mobile theft, the network of the telecommunication companies will be used to disable the application. But what about the hacking?

Against the wasting of large retailers : the emergence of the Freegan movement

2008-12-04T18:51:00.000-08:00

Restaurants of the Heart reopen their generous closets this winter for the 24th consecutive year. For while the centers are now open all year for the poorest, the launch of the distribution of winter (from December 1 to March 31) remains highly symbolic: it is qu'affluent mass victims of cold and this year especially, the economic crisis.

Officials of the association founded by Coluche fear indeed to beat a new record attendance, because of this' social and economic climate very difficult and unprecedented. " Last year, some 51,500 volunteers have served more than 91 million meals to about 700,000 beneficiaries.

"There are more people to help"

In Seine-Saint-Denis for example, entries are open since mid-November - are "already up 10%" argued an official of Restaurants of the Heart. And the figure will likely increase, as the winter progresses, it also fears. Nationally, the trend is much the same: enrollment increased by 5 to 10% say those responsible.

Faced with increased insecurity and declining purchasing power explain how supermarkets who throw the food.

Supermarkets, fast food restaurants, bakeries, stations, airports, etc.. Reject each day tons of food. A treasure that some do not hesitate to recover. These are called the freegans. Their credo: Fighting over!

The militants' freeganisme "are not bums, but active, usually urban, that gain all that food stores and supermarkets put in the trash. In doing so, "freegans" criticize the consumer society they believe, in turn, responsible for violation of human rights, environmental destruction and animal torture, close the ban. For them, consumption market can not be a criterion for defining the well-being.

Meanwhile, the few professionals of large retailers who agree to speak on the subject prefer to put forward their donations to food banks and branches reclamation of waste they put in place.

For other followers of the movement, be "freegan" is also trying to awaken consciences more violently. With increasing insecurity and poverty, food for all should take precedence weapons programs.

And if everybody does not necessarily anti-belief of freegans, the debate over many questions

Because the waste bins beyond supermarkets and, if freegans do not attack our waste, our bins do not least teem mountain of food wasted. You figure that every day 1 300 000 yoghurt pots go in the trash without being opened.

Similarly 5 500 chickens were dumped without ever seeing the inside of the oven, at a time when food prices are rising sharply.

If the trash is making a case of militancy for some, for others it is a matter of necessity and survival. Pascal, Melanie, are few.
He arrived in Pascal, a student without a penny, to the dustbins of Mc Do in the city.

Melanie: "In gleaning market I save 15 € per week"

Protected by its cherry red umbrella, Melanie was crouched between crates and cardboard. At a time when the market Cristal folds its trestles, the student license Glane English fruit and vegetables unsold.

On reflection, Melanie recognizes that it can get fruits and vegetables aware of the incredible waste product that the consumer society. But his choice is guided primarily by economic reasons that students know: "I have a budget of € 200 per month. My mother pays me rent - 415 € - for a few months. Then it will take me débouille alone. In picking fruit and vegetable market, I save a good fifteen euros per week. "

Most share a common knowledge for months. A 32-year and 60, and Andre Bernard receive meager 440 euros each of RMI. Lidl in their bag, a big rag reach just a few mushrooms. "It's too expensive! The prices of vegetables have risen further, we can not afford them, "Andre is sorry. In this Saturday, the harvest is a little thin and they come back the next day ...
In response, we will not change our ways and our consumption habits

Nokia 5800 will miss Christmas!

2008-12-04T14:34:00.000-08:00

Nokia will miss the crucial period of Yule concerning the launching of its new Smartphone, the N5800.

New Smartphone from Nokia, N5800, will be marketed before Christmas only in few emergent countries like India, Indonesia, the United Arab Emirates, Hong-Kong, Taiwan and Russia. But in France and in other countries, it will be available only in the beginning of 2009. Apple and RIM will benefit a lot from this situation.
Nokia, worldwide mobile phone industry leader, had to react by launching a touch screen multi-media mobile in order to compete with Apple Iphone 3G or Blackberry of RIM. Consequently on the 3rd October 2008, Nokia announced the launching of Nokia 5800.

With already more than one year of delay within the launching process initially provided by the Finnish company, N5800 was to be marketed at the end of 2008 at the price of 400€ including all taxes (except grant operator).

However, a new delay has disturbed its introduction on the market. According to Nokia, the time-table of his new mobile launching process is similar to what it is observed from many other competitors products, It can be explained by the required time for personalization of compounds for each operator. "The integration of a tactile interface makes just more complicated this personalization, added the Finnish manufacturer" (Reuters)

The leadership of Nokia can be threatened on the market of Smartphones. Indeed, the market share of the Finnish company on this market fell in the third quarter of 2008 to 38,9%, against 51,4% one year ago over the same period. In the same time, Apple and RIM leaped respectively with market share of 17,3% and 15,2%.
This situation is quite similar to the error that Sony made when launching the Playstation 3 in Europe.There Sony could measure the consequences by selling less PS3 than Wii or Xbox 360. And as we have seen before, the positions in the smartphone market seem to be already established.

Large retailers facing economic crisis : Winners and losers, abstract.

2008-12-02T19:22:00.000-08:00

Retailing actors are one of the most important tags showing the evolution of the economic crisis on the markets. Indeed, shortly after the start of the crisis, consumers became very careful with their money. In order to avoid temptation, people prefer modifying their way of consumption going to grocers and supermarkets rather than hypermarkets. So, since October 2008, consumption has lost 0.55 %. The volumes of alimentary expends are quite stationary concerning large establishments (thanks to supermarkets) although non alimentary goods (clothes, electronics, books, records…) are in regression.

The great winners are hard discounters and low-prices strategy

Wal-mart, world’s n°1 retailing company, appears to be the great winner. It’s marketing strategy is a succeed, leading the company in the USA to be considered as the one proposing the lowest prices and permitting it to realize a 12% raising of it’s quoted value.

In France, Casino group, with it’s two jewels Franprix and Leader price actually in high development, is quickly growing. Even Carrefour is tempting to use the same way of development: “Carrefour’s project is to sell it’s hard discount division (brands Ed and DIA), recently considered under the shareholder’s pressure, is no more actual”, says a retailing specialist (Study 2007, les échos).

The great losers, the companies who have not developed their own brands.

The great retailing companies who didn’t manage to protect themselves from the crisis are those who didn’t understand that they had to low their prices and to diversify their products too. Those two elements are present in the retailers own brands (ROB).

The ROB, cheaper than national brands, are logically very popular. Carrefour group, in which brand’s development has never be a priority, let go a good opportunity to limit the impact of the economic crisis. Since October, although keeping to be one of the cheapest hypermarkets, Carrefour has strongly limited his promotions.

Abstract

The economic crisis leads in retailing, as in many other sectors, to a major fall of the purchase power of the French. It’s international extension is going to modify the consumer way of buying around the world. He tries to save his money, buying the cheapest goods, mostly those of the retailers own brands.

Gradually some of the hypermarkets stop selling electronic goods. If this low price strategy seems to be the solution to minimize the effects of the crisis, can it be a long term strategy ?

Opening blog Retail Core

2008-12-01T17:14:00.000-08:00

We are pleased to announce that the RetailCore blog has been launched. It is dedicated to strategic analysis and the influence of large retailers in the world.

This blog is run by students enrolled in a Master programme in Competitive Strategy and information analysis at the Ecole de Guerre Economique. This is a projet overseen by Tarik Mousselmal.