The Dutch bazaar chain jumped four places in the ranking of the French’s favorite stores. Complete the podium dominated again this year by Leroy Merlin and Decathlon.
The Mulliez group’s brands are at the heart of French consumers. Leroy Merlin and Decathlon are again this year the two favorite distribution groups of the French according to EY’s annual Parthenon study. It should be noted that the study* was carried out in January, before the Russian invasion of Ukraine that gave rise to to a controversy over Mulliez’s signs.
With 41.7% fans each according to EY methodology, Leroy Merlin and Decathlon are tied for first place among favorite brands.
“These two brands confirm their leadership year after year: Leroy Merlin was the winner in 2021, and Decathlon in the 2019 and 2020 editions, explains EY in its study. Strong positioning, consistent over time. Decathlon and Leroy Merlin, our winners teams this year, they are part of it with fan ratings two to three times higher than their runners-up.
A success that has not been denied with the health crisis. Rather, the two merchants were able to double their success in web stores.
“Leroy Merlin saw the web go from 3.5% of sales in 2019 to 7.4% in 2020 and almost 11% in 2021, specifies EY. For Decathlon, the advance is even more evident with 4.5% of turnover in 2018, 7% in 2019 and 16% in 2020”.
The big jump of the action
However, e-commerce is not the only key to success. Witness the dazzling trailer for Action, the dutch bazaar poster who stands on the podium this year. With 37.6% of fans, Action jumped four places in the general classification and crowned Amazon, Ikea, McDonald’s and Fnac this year, which surpassed it in 2021.
After conquering the province by opening hundreds of points of sale, the discount store opened its 600th store in Paris last year. Objets de déco, de bricolage, droguerie, produits d’hygiènes ou d’épicerie, gadgets divers le tout avec des grandes marques à prix bradés, le concept d’Action a su en dix ans find a central place dans le paysage de la distribution French. In 2020 and despite the administrative closures linked to the epidemic, the group experienced an increase of 6% with a turnover of more than 2,000 million euros.
“The most notable advance this year is that of Action, which continues to conquer the hearts of the French with a record profit (+6.6% fan rate in its sector), notes EY. Three criteria clearly distinguish it in the eyes of customers: its value for money, its experience in the store and the proximity of its stores.”
The Dutch brand largely dominates its competitors Gifi, Centrakor or La Foir’Fouille, which, however, have been established in the territory for much longer than it.
Located in peripheral shopping areas, the Action stores (900 m² on average) are spartan and unattractive. But this is what allows the group to have lower operating costs than the competition and offer lower prices, even on products from the main brands.
Above all, it buys products in very large quantities at a European level and uses the surpluses of its competitors, which it resells at home at reduced prices. An assortment of 6,000 products on average per store with weekly news. that seduces the consumer influencers who multiply the videos of visits to stores looking for bargains. Customer driven marketing, aggressive pricing, positive word of mouth and great deals every week… Action has established itself as the Lidl of everyday products.
*The study was conducted in January 2022 by interviewing an online panel of more than 9,500 French consumers over the age of 18, with around 60,000 opinions. This survey was conducted by the company DYNATA. 161 brands were rated by consumers, in 17 different business sectors. The study measures the percentage of fans among customers who have made a purchase in the corresponding category during the last 12 months. Respondents give visited brands an overall satisfaction score and a score on 14 criteria* (score from 1 to 5 stars).