A new player is entering the mass distribution and hard discount sector in France: the Brazilian brand Atacadão, now owned by Carrefour, eager to take positions in the market. The latter has just opened its first store in a former Carrefour in Aulnay sous Bois.
The Atacadão store is reminiscent of the old Lidl or Aldi. Here, there is no decoration or sophisticated display: the products are offered directly on pallets. This strategy allows Atacadão to display prices on average 10 to 15% cheaper than those of the competition throughout the year. The store offers a reduced range of 9,000 referencescompared to 40,000 in a traditional hypermarket, and offers bulk packaging to encourage customers to buy in quantity, thus reducing the price per kilo.
The strategic positioning of Carrefour
With food prices increasing by 20% since the invasion of Ukraine, the question of purchasing power is vital. Even if inflation is stabilizing, prices remain high, making making ends meet difficult for many households.
Launching Atacadão under a new brand allows Carrefour to enter a competitive market without affecting one’s own image, which is that of a brand more expensive than the others. This also allows him to preserve your margins while adapting to consumer expectations looking for low prices. However, success is not guaranteed, as evidenced by the failure of the brand Toujustwhich went bankrupt nine months after its February 2023 launch.
The new brand targets customers of Lidl, Aldi and Action
If the Leclerc brand dominates the market with 24% share, Carrefour, as number two in mass distribution in France, has nearly 20% market share. This is why it has the necessary power to support a new brand. Atacadão also benefits from know-how with its 366 stores around the world. This new offer, focused on large packaging, allows Carrefour to occupy a vacant niche.
Atacadão main purpose customers of Lidl, Aldi, and Metro. The latter offers a concept similar to that of the Brazilian but reserving it for professionals. The Brazilian brand also has compete with Action, favorite brand of the French with 800 stores in the country and ultra competitive prices. Action is now one of the ten commercial brands where the French spend the most money according to an LSA survey, even though 1/4 of the products on the shelves are worth less than one euro.
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