Marseille: How an atypical supermarket fights inflation
In Marseille, in the heart of the Saint-Just district, a new supermarket is fighting the high cost of living. The product saving is on average 20% compared to supermarkets and an anti-inflation basket is offered at an unbeatable price.
Fight the high cost of living. While inflation is hitting the country hard (5.2% on average for 2022), some retailers are offering alternatives to allow French people to shop at low prices. This is particularly the case for this Marseille-based retailer, which offers products 20% cheaper than in the supermarket and a special anti-inflation basket.
“The idea is to offer quality products at low prices,” explains the retailer, recently based in Marseille (Bouches-du-Rhône). The concept is simple: if all products are cheaper than in “classic” supermarkets, consumers can also choose from 120 labeled items in the store to put together a basket of 35 items. This anti-inflation basket is offered at a fixed price of 49.99 euros.
“For less than 50 euros, you have 35 items that you can choose from in the store, compared to the competition from other traditional shops, this shopping basket would be between 65 and 80 euros,” the retailer specifies.
Negotiations with suppliers and reduction of margins
To make ends meet financially, the recipe is simple. This Marseille merchant starts price negotiations with his suppliers and then reduces his margin compared to “classic” supermarkets. This is how he manages to be profitable and offer unbeatable prices. In traditional stores, food margins range from 13% to 27%, depending on the product.
Given the success of his business, this retailer hopes to expand its offering to more than 400 products in the coming months.