French retailer Carrefour will launch a range of low-priced products, echoing Tesco’s Tesco Value range. The new line will be called Carrefour Discount, Carrefour franchisee Guyenne et Gascogne, said yesterday during the presentation of its 2008 annual results. Reportedly, Carrefour Discount will come in simple, white packaging. The name "Discount" will be handwritten. It is hoped the new brand will help the retailer compete with discount operators and, particularly with Schwarz Group-owned discounter Lidl. The first 180 SKUs are expected to be launched in mid-May, then 400 by the end of the year. The retailer aims to launch 1,000 SKUs. The Carrefour Discount brand will be applied to essential everyday products with the first 400 SKUs being: 170 ambient SKUs, 80 fresh/self-service, 70 hygiene and beauty as well as 30 for drinks. The new low-price range will not be discounted and will not grant points to the Carrefour loyalty card owners. The retailer will use the Carrefour Discount line in its advertising campaigns, including TV, where the law prohibits talking promotions.
Furthermore, Guyenne et Gascogne has confirmed that in the second half of 2009, it will reduce the sales area of its 24,000 square metre flagship store in Portet-sur-Garonne (suburb of Toulouse) by 6,400 square metres, with the sales area either rented to boutiques or to mid-sized stores. The hypermarket is one of Carrefour's less profitable hypermarkets as its sales per square metre are a third lower than average for its 228 French hypermarkets. www.planetretail.net
