Retailing in France, Market Shares, Summary & Forecasts to 2021
France is one of the Top 10 economies in the world and ranks third in the EU, after Germany and the UK. It is a service led economy with a highly educated workforce, a very strong manufacturing base in the automotive and aerospace industry and is a leading global player in cosmetics and luxury goods. Tourism is a key contributor to its economy, attracting millions of visitors each year, but major terrorist incidents in 2015 and 2016 dented numbers.
As the economy recovers, consumer spending will improve. Though the food & grocery sector will grow the most, led by inflation and an increasing population, there is intensive competition in the sector. The clothing and footwear sector is the slowest growth sector as it faces over penetration. The market is highly competitive and even established brands are struggling due to the entry of new international brands and concepts that capture market share.
Expansion of international brands & new foreign players will continue to force traditional players to use price discounts to remain competitive. As a result, while volumes will increase, overall spend will be subdued at a CAGR of 0.6% between 2016 and 2021, and market share gains will be at the expense of competitors.
Food & Grocery sector in France is dominated by three retailers; Carrefour, E.Leclerc, and Intermarché which between them account for nearly a third of all spending in the sector. Online spending in food & grocery is forecast to grown by CAGR 13.2% while the overall market will grow by CAGR 3.2%.
While hypermarkets and large discounters dominate the market, the highest growth over the next five years will come from convenience formats and online retail as consumers shift their spending to more convenient methods that fit their lifestyles. Home improvement, Garden products and Homeware markets grew, thanks to the recovery of real estate, which particularly benefitted the home furnishing industry. The growing demand for outdoor entertaining caused outdoor living and light sources to grow rapidly. Favourable weather conditions and lucrative promotional incentives intensified demand throughout the year.
Increasing popularity of social media and smart phones caused a decline in the sales of Books, News, and Stationery. With an increasing number of online websites and mobile apps, people prefer to read books and newspapers digitally. This decline trend has been seen since 2012 and is expected to continue to 2021. Overall sales of Jewelry & Watches are growing due to the increased production of luxury watches compared to gold or silver jewelry. In addition, the sale of leather goods and leather bags is growing rapidly.
The report Retailing in France, Market Shares, Summary & Forecasts to 2021 provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to French retail environment. In addition, it analyzes the key consumer trends influencing French retail industry.
In particular, this report provides the following anlysis -
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