North of Paris, this famous discount brand opens a store with the “lowest prices on the market”

This Thursday morning, Carrefour marked a turning point by inaugurating its first French Atacadao in Aulnay-sous-Bois, in the O’Parinor shopping center. This new concept, which is inspired by Brazil, replaces an old Carrefour hypermarket and represents a real innovation for the distribution group led by Alexandre Bompard.

“Carrefour is a group that takes risks. We decided to launch this experiment when hyperinflation hit the food market,” he declared during the opening.

A new concept in France

Atacadao is accessible to both individuals and professionals and combines the characteristics of a Metro or Promocash type cash-and-carry and a hypermarket. Carrefour, which bought the Brazilian brand in 2007 and made it a success with 366 stores in Brazil, introduced this warehouse format where stocks are stored high up and products are often presented in their original packaging.

To accommodate this new concept, the old hypermarket underwent major modifications. The foundations were reinforced and the sales space reduced from 15,000 to 9,000m2 to increase reserves with a total investment of 10 million euros. The executive director of the Atacadao project in France (formerly Executive Director Latin America for Carrefour), Noël Prioux, underlined the importance of stocks in this type of store to sell large volumes to professionals.

What are the Atacadao prices worth? Answer with my meal tonight 😋 pic.twitter.com/nqefHSFqbp

— Olivier Dauvers (@Dauvers70) June 20, 2024

14,000 references only

Atacadao today offers “only” 14,000 references on its shelves, which is much less than the 40,000 in a traditional hypermarket. However, there is a relatively diversified range including Carrefour’s own brands, major brands and SME products. Our colleagues from Echoes also add that there will be numerous references to products “Asian (Chinese, Japanese, Korean), Oriental, African, etc. The brands present are not found in traditional supermarkets”.

“The colors are shimmering. Prices are low because we will do little promotions and no advertising. We rely on word of mouth to attract people from well beyond our natural catchment area. This is not a poor store. It’s a store that people want and in Brazil we see that the wealthy classes come there a lot. The idea is to give pleasure » summary Noël Prioux from our colleagues.

In terms of prices, Carrefour wants to be very competitive for this new brand: Barilla penne rigate costs 0.98 euros when a Carrefour City sells it for 1.55 euros. The more you buy in volume, the lower the prices: sparkling water is sold for 0.39 euros/liter but when you put a pack of 6 in your cart, the price drops to 0.29 euros/liter.

To succeed in offering unbeatable prices, Carrefour limits all its expenses and relies on word of mouth. As explained in Capitalproducts are delivered by suppliers to the store to avoid going through a warehouse and traders are in the starting blocks to find the products at the best prices on global markets.

If some local actors see it as “a gain for the purchasing power” of locals, others (necessarily) criticize the downgrading of the population.

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