Extensive SWOT Analysis of E.Leclerc – A French Hypermarket Chain

Quick Stats on E.Leclerc

Founder	Édouard Leclerc
Year Founded	1948
Origin	France
No. of Employees	133,000
Company Type	Public
Market Cap	5 Billion Euros
Annual Revenue	US$ 56.87 Billion (2019)
Net Income/ Profit	N/A

 

Products Of E.Leclerc

E.Leclerc offers a wide range of products which can generally be categorized into

• Discount store
• Hypermarket
• Supercenter
• Superstore

Competitors of E.Leclerc

E.Leclerc’s list of competitors include

• Pick n Pay
• Fred Meyer
• Runnings
• Dierbergs Markets
• Spinneys

Now that we are familiar with how the company’s history and it’s working, let’s dive right into the SWOT Analysis of E.Leclerc.

SWOT Analysis of E.Leclerc

SWOT Analysis of E.Leclerc is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.

With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like E.Leclerc to examine the business environment.

To better understand the SWOT analysis of E.Leclerc, refer to the infographic below:

Now first let’s begin with the strengths of the company from the SWOT analysis of E.Leclerc.

Strengths of E.Leclerc

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of E.Leclerc:

• People-Centric Management: It maintains good relations with all of its stakeholders including its vendors and suppliers. It has a strong employee policy and is transparent in employee relations.
• Discount Policy: It is known for its low price and various offers and discounts. This gives E.Leclerc an edge over the competition. Through its pricing strategies, it is sufficiently generating value.
• Family Experience: E.Leclerc stores offer a full family shopping experience. It is a one-stop destination for all of the family’s needs which makes the customer shopping experience way much easier and people are liking this.
• Digital Platform: E.Leclerc also allows customers to order online through its website and its app, E.Leclerc ready. Customers can now order listing products from the E.Leclerc app and easily receive their products at the doorstep.

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• National Presence: E.Leclerc has its presence almost everywhere in France, which makes it the most preferred retailer by the customers: It has its presence in about 720 locations in France.
• Distribution Channels: E.Leclerc has a healthy and stable distribution system that ensures that the products of partners are easily accessible on time and allows it to operate in many locations of India.

Weaknesses of E.Leclerc

Weaknesses are used to refer to areas where the business or the brand needs improvement.   Some of the key weaknesses of E.Leclerc are

• Dependent on One Nation: E.Leclerc is dependent heavily on France and is susceptible to foreign players.
• Rented Assets: Retail stores like E.Leclerc operate mostly through rented stores in malls, resulting in higher costs and the majority of sales going to pay rents.
• Slow Growth: E.Leclerc was established 74 years ago, but it still hasn’t been able to capture the market as much as it should have. It’s mainly because of its long term focus on only one mission. 
• Extended Focus on Low Prices: In its attempt to provide low prices to its customers they have to continuously haggle with vendors which may aggravate vendor relations.
• No Frills Approach: This basically means that in an attempt to cut costs it may have to reduce the quality of service they provide to their customers like unprofessional customer interaction in stores by employees.

Opportunities for E.Leclerc

E.Leclerc is one of the largest supermarkets. Therefore they might have many opportunities approaching them that could give them a chance to capitalize to increase their returns. 

• Improving Technology: Improved technology will enhance the in-store experience of customers and it, therefore, can charge a premium for that.
• Quality of Service: Retailers like E.Leclerc should capitalize on the propensity to pay more and therefore improve the quality of service.
• Growth Potential: E.Leclerc stores aspire to be France’s most valuable retail store for its customers. They can take this as a motivation to grow more in the market such as global expansion and tie-ups with international brands.
• Developing Economies: The entire economy is open, and E.Leclerc has a rising opportunity to access burgeoning developing economies.
• Personalized Service: Customers are always looking for more personalized service and are even willing to pay more for it.
• Scope for Increasing Market Share: E.Leclerc has a great scope of expanding its market share by opening more stores in France and the countries outside.

Threats to E.Leclerc

E.Leclerc also has some threats on their business from the outside. It is very important to anticipate them before one becomes a victim to them.

• Online Competition: People today are more and more inclined to shop online rather than visit a store and do all the hard work. Online competitors like Amazon Pantry and Local Platforms are becoming tough competitors of supermarkets like E.Leclerc.
• Online Start-ups: There is a massive increase in the number of startups and they generally provide even lower prices and personalized experiences.
• Low Barriers to Entry: In retail, there are low barriers to entry which means there is not much restriction to start a business and so there is high competition. 
• Unorganized Retail: A large population of the target market still prefers to buy goods directly from local convenience stores and shops. 
• Government Policies: There is a continuous change in government policies across different countries. Moreover, political unrest in the country can impede business, resulting in lower performance and higher costs.

This ends our in-depth SWOT analysis of E.Leclerc. Let us conclude our learning below.