Hypermarket's struggle against the development of hard discount in France

Résumé du document

This dissertation is directed towards the retail world of France. The study is undertaken for the final term of this academic year's research project. To make the topic of study as dynamic and interesting as possible, I have presented a suitable title for the dissertation. Hence, at the outset, the title defines the subject, which includes naming the retailers and referring to the differences between these competitors.

Primarily, this study covers the traditional hypermarket format, the most common format against the innovative hard discounter concept. There are several names for "hard discounter", such as "maxi discount" and "soft discount". Hard discounters are a place of purchase where prices are mostly lower, yet marketing and customer service are not a priority. This concept is the opposite of the definition of a hypermarket. A hypermarket is a self-service retailer that achieves more than one third of its sales in food and whose sales area is greater than or equal to 2,500 square meters. This phenomenon is spread over geographical and cultural locations and determined in this case by France.

When we analyse a possible title: "Hypermarket versus Hard Discount"; there are two distinct formats for retailers where the struggle over the French market is very intense. A title such as "Hypermarket versus Hard Discount" could refer to a series of enumeration and differentiation between these two competitors. But the problem between these two formats would be more attractive. To conclude, "Hypermarket's Struggle against the Development of Hard Discount in France" defined and delimits the subject while referring to the problem and its location.

Extraits

[...] The hypermarkets are struggling against the rise of hard discounts food in France. The stakes are crucial. One should know that the hypermarket format represents almost a third of turnover in the retailer market. But the arrival of a new concept in this market is a major threat to the hypermarket. Finally, the problem facing this particular industrial war is to know the place of consumer and the means used by the retailer to gain market share. Aims and Objectives of the Research This dissertation is directed at gaining knowledge about the means that are put to work by large retailers to counter the hard discount in France. [...]

[...] Three main objectives are outlined to develop this dissertation. Literature Review To respond effectively to these objectives we must rely on lectures, articles, news, interviews, database, theories and concepts. It should be noted that this study does not fall mainly on concepts and theories on findings based on the ground. We need to understand the economic context of large retailers . J. Brasseul (2003), in his work “Economic History of the Great War to 11 September”, explains the history of economic facts in the 20th century that were marked by a major changeover at the end of the Second World War. [...]

[...] To find an alternative, I headed directly to food firms working with hypermarkets and hard discounters. Hence, I could form an opinion on the phenomenon. As I could not collect opinions of professionals, I have decided not to cite this alternative in my dissertation but use it as a support to the comments made in-store and to support the statistical data collected. List of References Agulhon. Nouschi. Schor.R France from 1940 to the Present , Editions Nathan, Paris. Belot.L Mass distribution noted on its policy of purchasing Christmas Le Monde November p 9. [...]

[...] This innovative concept was so successful that it was adopted throughout the world in several countries such as China, South America and Europe. A multi-format was evolved in these countries as a result of its merger with Promodès market chain. The strength of Carrefour is also known to have related to their reconciliation of internal growth and external growth. In the second part of development of the chain that was based on consumer behaviour, profiles are analysed through multiple concepts and theories. [...]

[...] Hofstede has developed a theory adapting to cultural and situational differences and McClelland (1961) identifies other needs such as achievement, affiliation and power in relation to the behavioural changes of the population. Finally Maslow in 1968 added specific needs and wrote a new book accessing primarily psychology titled "Towards a psychology of being". The Maslow pyramid has been adapted to the different formats of existing distribution in France and corresponds to the needs of consumers. Source: Alan Chapman 2007, Maslow's Hierarchy of Needs Source: Personal Composition According to the McGoldrick's concept (2000), the consumer perception in relation to stores is based on the cost/benefit ratio. [...]