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As it looks to expand its ecommerce offer in Paris, Leclerc has strengthened its position by signing an agreement with ID logistics.

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As Carrefour and Leclerc discuss online developments in Poland, we look at the two retailer’s contrasting views on the channel’s short term development in the country.

 

Carrefour beta tests marketplace

 

 

Carrefour has launched the beta version of its online marketplace in Poland. The store will massively increase the size of its range enabling both it and third-party retailers to sell through the site. Shoppers using the site will be able to have orders delivered to home or made available through click and collect counters in-store.

 

 

Carrefour said that products that are successful online could be added to its in-store ranges, especially its hypermarkets. The site will enable Carrefour to collect data on shoppers, their buying preferences and help it to better target in-store ranges as it looks to make stores more appealing to shoppers. The launch of the marketplace in Poland builds on Carrefour’s growing online skill and scale in the country, which has been expanded to carry new products and cover more cities in recent months.

 

 

Leclerc cautious about online prospects

 

 

Meanwhile, in an interview with Wiadomosci Handlowe Leclerc Poland’s chief executive, Jean-Philippe Magre, said his company is more cautious about online’s prospects in the country. Magre feels demand for ecommerce is not as established as it is elsewhere in Europe, but noted that Leclerc will develop an ecommerce solution at some point. The process to unify all its stores and develop a process to operate online is expected to take two years.

 

 

11 of Leclerc’s stores in Poland operate some sort of online solution, with more likely to launch an offer soon. Magre says that the direction of travel is inevitable and that shoppers will increasingly want ecommerce solutions as they will want the convenience and choice about where they shop.

 

The E Leclerc group is to spend €1bn transforming its digital operations over the next three years.

Digital transformation

The E Leclerc group is to invest €1bn to accelerate its digital transformation over three years. The investment, which aims to create 10,000 jobs, will reach up to 65m shoppers.

Centralised logistics

In a TV interview, CEO Michel-Edouard Leclerc stated that the money will be used to create a large internet portal with centralised logistics, commenting “In five years, my rival will no longer be Hyper U or Auchan but Amazon”. Leclerc did stress that the investment would not detract focus from the group’s physical stores, with no job losses planned at its supermarkets and hypermarkets as a result of its online expansion.

Developing Drive

Leclerc has previously confirmed that consumers' changing behaviour confirmed the retailer's decision to evolve towards multichannel. One of the cornerstones of this strategy - the Drive format - has continued to develop apace, with 111 new openings in 2014 to reach 557 (close to Leclerc's previously stated target of 600; it aims for 800 by 2016). Over EUR1.9bn of turnover was achieved via Drives in 2014. In addition to France, Leclerc is testing Drive in Poland, Spain and Portugal.

Conad, Colruyt, Coop Schweiz and Rewe Group have launched the new alliance, Core, established following Leclerc's exit from Coopernic.

New strategic alliance

The retailers have come together to create a new alliance called CORE. It is headquartered in Brussels and Rewe CEO, Alain Caparros, is its president. Total sales of the four retailers were around €88bn in 2013 which was more than the €84bn posted by Europe’s biggest retailer, Carrefour. In total, CORE will cover 18 European countries with about 20,000 stores.

The CORE Board of directors will consist of:

  • Colruyt Group: Frans Colruyt and Christophe Dehandschutter
  • CONAD: Francesco Pugliese and Mauro Lusetti
  • COOP Suisse: Joos Sutter and Philipp Wyss
  • REWE Group: Alain Caparros and Manfred Esser

Internationalisation of food retailing

By forming this group, the retailers believe they will be in a stronger position to compete. They hope to build stronger relationships with their FMCG partners and offer lower prices to customers.

Speaking about the alliance, CORE president, Alain Caparros, said: “CORE is designed to meet the growing competitive challenges in Europe and to address the increasing internationalization of food retailing. Through collective negotiations, we intend to offer more competitive prices to our customers... At the same time, we will continue to build internationally strong partnerships with predominantly FMCG companies. With a consolidated and successful management, CORE offers attractive growth perspectives for our suppliers.”


Presentations

26/04/2017
Leclerc is the second largest retailer in France and operates a regional co-operative model that keeps prices low for shoppers. Understand what this means for the supply chain in this two page guide, which also features the latest on its multichannel strategy and plans for the future.
03/02/2017
Learn how click and collect is developing in the UK, France and the US, and how you could create a seamless omnichannel experience for your customers.
14/08/2014

As Drive solutions expand globally we review how retailers in France are adapting their strategies to add fewer sites, boost their appeal and focus on improving the format’s profitability.

The supply chain industry is evolving rapidly. Driving an incremental skills and talent shortage in its wake. Uncover the five routes to success to allow you to equip your supply chain for the challenge ahead.

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