The non-food discounters market - France (2025)

1.2 The global market

The global discounters market was valued at $***.** billion in ****, and is expected to reach $***.** billion in ****. It is projected to grow at a compound annual growth rate of *.**%, reaching $***.** billion by ****.

Discounters market trends World, ****-****, in billions of dollars and % Source: ****

1.3 Domestic market

In ****, the bazaar and clearance market reached ** billion euros, an increase of *% on the previous year. This dynamic is influenced by a number of factors, such as the economic crisis and growing consumer interest in discounted products, which enables retailers in this sector to attract large numbers of customers. This market is divided between several European players, whose market shares will be detailed in sub-section *.*.

Sales trends in the bazaar and clearance sector France, ****-****, in billions of euros Source: ****

2.1 French purchasing power

The **ᵉ baromètre du pouvoir d'achat des Français, carried out by Cofidis, states that in ****, the main concern of the French is purchasing power. This prompts us to analyze this aspect in greater detail in this section.

The main concerns of the French France, ****, in Source: ****

Against this backdrop of concern, more than half of French people (***) say they are finding it difficult to get by on their income, and * out of ** feel that their purchasing power has declined.

How easy it is for the French to get by on their income France, ****, in Source: ****

French people's estimation of their future purchasing power France, ****, in % Source: ****

In a survey conducted by Ifop-Fiducial, **% of French people say they have less than *** euros after the **th of the month, and **% say they are overdrawn. According to the **ᵉ baromètre du pouvoir d'achat, the average French bank overdraft is €*** per month.

How much money the French generally have on the **th of the month France, ****, in % Source: ****

2.2 The French and non-food discount chains

Havas Commerce, noting the rise of discount in various countries, has undertaken an in-depth study involving *** million people worldwide and *,*** in France. The aim of this initiative is to analyze the dynamics of discounting, its perceptions in different regions, and consumers' motivations and hesitations with regard to these chains. The first finding is that discounting enjoys genuine popularity on a global scale! Indeed, **% of respondents, including **% of the French, say they now visit discount stores.

The non-food discount chain best known to the French is Gifi, with **% claiming to know it, closely followed by Action (***) completing the podium.

French awareness of non-food discount chains France, ****, in Source: ****

Purchases and visits to non-food discount chains France, ****, in Source: ****

In terms of spending, Maxi Bazar is the discounter with the highest average basket (***).

Average basket for non-food discounters France, *st half ****, in € Source: ****

2.3 French satisfaction

The Havas Commerce study reveals the satisfaction levels of the French with various aspects of non-food discount chains.

In terms of value for money, Action stands out with the highest satisfaction rate (***) record the lowest scores.

How satisfied are the French with the quality/price ratio of retail chains? France, ****, in Source: ****

The graph below shows how satisfied the French are with the choice of products offered by these chains. Action remains in the lead with a satisfaction rate of **%, followed by Électro dépôt (***), suggesting a more limited offer for consumers.

French people's level of satisfaction with retailers' product choices France, ****, in Source: ****

When it comes to delivery options, Conforama stands out with the highest satisfaction rate (***) record the lowest scores. Overall, satisfaction levels are relatively low, suggesting that the delivery options offered by these chains do not fully meet consumer expectations.

French people's level of satisfaction with retailers' delivery options France, ****, in Source: ****

In terms of French satisfaction with retailers' environmental commitment. Action tops the list with a satisfaction rate of **%, followed by Electro dépôt (***).

French people's level of satisfaction with chains' environmental commitment France, ****, in Source: ****

2.4 France's favorite retailers

The **** survey of French consumers' favorite brands reveals that Gifi (***).

It should be noted thatthe survey does not analyze the other non-food discount chains mentioned in this study.

Non-food discount chains preferred by the French France, ****, in Source: ****

Non-food discount brands preferred by the French, by gender France, ****, in % Source: ****

In terms of age distribution, GiFi remains the most popular brand in most categories. The **-** age group is the exception, with a preference for Action (***).

Non-food discount chains preferred by the French, by age group France, ****, in Source: ****

3.1 The value chain

Manufacturing or sourcing manufacturing or sourcing: Products are either manufactured directly by own-brand manufacturers, or purchased in bulk from low-cost suppliers, often in Asia or Eastern Europe. Price negotiation is key to guaranteeing low costs. Logistics and inventory management logistics and inventory management: Products are routed to optimized distribution centers to minimize storage and transport costs. Just-in-time management reduces tied-up inventory and ensures rapid replenishment in store. Distribution shelving is simplified, and stores are arranged to maximize stock rotation and impulse buying

3.2 Market breakdown

The Joko mobile application examined the banking transactions of a sample of ***,*** individuals, reflecting the French population in terms of age and gender, across several non-food discount chains. The results showed that discounter Action is the leader with **% market share, followed by Gifi (***).

Breakdown of the non-food discount market France, H* ****, in Source: ****

Unsurprisingly, the leading discount brand is also the one with the highest frequency of purchases.

Purchase frequency of non-food discounters France, H* **** Source: ****

3.3 Discount chains come to town

Faced with the saturation of outlying shopping areas, discount bazaar chains are changing their strategy by turning to city centers. This choice, dictated by changing consumer habits and the high concentration of the urban population (***), comes with a number of challenges.

An attractive opportunity

With out-of-town development having reached its limits, with *,*** stores by **** and a slowdown in sales growth per outlet (***), discounters are looking for new growth drivers. City centers offer an attractive alternative, thanks to the vacant premises left by fashion retailers. These spaces enable direct proximity to urban customers and meet their growing demand for accessibility. Retailers such as Flying Tiger and Hema have taken advantage of this to open in Brest and Rennes respectively, replacing fashion stores.

The challenges of locating in city centers

However, this strategy is not without its difficulties:

High rents: Rental costs in the city can compromise profitability. With rents often incompatible with the discounters' initial business model, retailers have to adjust their margins or raise their prices. For example, La Foir'Fouille, in Suresnes, has revised its offer downwards by limiting the number of SKUs to *,*** versus the usual **,***, while increasing some prices by **% to **%. Reduced surface areas : In contrast to the large ...

4.1 France's leading non-food discounters

France's non-food bazaar and discount sector is enjoying remarkable momentum, as revealed by LSA 's latest Top *** retailers ranking for ****. The ranking highlights the sector's resilience in the face of the purchasing power crisis, with the majority of chains reporting strong growth. This context underlines consumers' growing attraction to non-food discount solutions.

Source: ****

4.2 Competition from e-commerce platforms

Online discounters such as Cdiscount, Shein, AliExpress, Temu and Wish are intensifying competition for physical bazaar and clearance stores such as Action, Gifi, Normal and Hema. Thanks to attractive prices, a diversified offer and permanent accessibility, these platforms are attracting a wide audience and redefining consumer habits.

Purchases and visits by online discounters France, ****, as % of total Source: ****

5.1 Regulations

Descrozaille law

Law no. ****-***, commonly known as the Descrozaille or Egalim * law, was passed on March **, ****. It aims to strengthen the balance of commercial relations between suppliers and distributors in France, in response to growing concerns about the practices of supermarkets and their impact on producers. Initiated by MP Frédéric Descrozaille, this law is part of a series of previous legislative reforms, notably the Egalim I and II laws, which already aimed to improve the situation of farmers and suppliers in the food sector.

Objectives of the law

The main aim of the Descrozaille law is to rebalance commercial relations by limiting potential abuses by mass retailers on their suppliers. This includes

Protecting producers: preventing large retailers from exerting excessive pressure on prices, which could jeopardize producers' profitability. Controlling promotions: limiting excessive promotions on certain products to avoid a price war that could harm suppliers. Improving negotiating conditions : clarifying and strengthening the rules surrounding annual commercial negotiations between distributors and suppliers.

Key provisions of the law

The Descrozaille law includes several important measures:

Capping promotions: promotions on non-food products (***) are now limited to **% of their value. This change is designed to put an end to excessive promotions, which ...

5.2 The law on the modernization of the economy, an advantage for discounters

The French Law on the Modernization of the Economy, commonly known as the LME, was officially promulgated on August *, ****. Its main aim is to remove obstacles hindering the development of certain sectors, thereby promoting job creation and lowering prices.

The provisions of the Law on the Modernization of the Economy cover a wide range of areas, with a significant impact on trade. Among the most notable measures is the abolition of authorization requirements for the creation or extension of stores of less than *,*** square meters. In addition, the LME introduced new regulations aimed at reducing business payment times, protecting the personal assets of sole traders, and controlling excessive annual price increases. excessive annual increases in commercial rents, and to facilitate business transfers within the family by reducing or exempting transfer duties.

One of the aims of the Law on the Modernization of the Economy(***) was to facilitate the establishment of hard-discount stores, with the threshold for prior authorization raised from *** to *,*** square meters. A hard-discount store is one with a surface area of between *** and *,*** square meters, the majority being between *** and *** square meters.

Source: ****

6.1 Positioning the players

• Action France
• Gifi France
• Normal
• Stokomani (Zouari Groupe)
• Hema
• La Foir'Fouille
• Miniso