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

by | Case Studies | 0 comments

In our previous blog, we talked about the SWOT Analysis of Enel, the 73rd largest revenue-making company in the world. This time let’s dig into the SWOT Analysis of E.Leclerc.

The main purpose here is to highlight the main activities and strategies of the E-Leclerc store that has made life easier for the people of France. It is probably one of the most reliable retailers for them. 

One reason behind the massive success of E.Leclerc is its marketing efforts. It is proven time and time again that marketing efforts, especially digital marketing play an important factor in a company’s growth. If you are interested in learning about digital marketing – check out our Free MasterClass on Digital Marketing 101 by IIDE’s CEO and Founder, Karan Shah.

Do you want to learn about the stunning success of E.Leclerc? Well, that is exactly what today we are gonna do! In this blog, we are going to dive deep into the SWOT analysis of E.Leclerc. But before we start, let us learn a little more about the company, its overview, products, competitors, etc.

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About E.Leclerc

SWOT Analysis of E.Leclerc - E.Leclerc

A French-based hypermarket and cooperative society chain – E.Leclerc is headquartered in Ivry-sur-Seine. The supermarket chain has more than 720 locations in France and 85 stores outside of the country. The large hypermarkets have a separate entertainment/multimedia section. The food-retailer E-Leclerc is actually a French Cooperative Society and hypermarket chain. It is very well-known and trusted by the people of France. It was established by Edouard Leclerc in Brittany on January 1, 1948.

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

 

SWOT Analysis of E.Leclerc - E.Leclerc Retail Store


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:

SWOT Analysis of E.Leclerc - SWOT Infographics of E.Leclerc

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.

Bonus Tip: Digitalisation has benefited customers with a hassle-free experience while shopping for household needs. And if some methodology has helped to improve customer experience then that thing is considered first by most of the other businesses too. So, isn’t learning various digital marketing skills that are making such things possible will be beneficial for you? If you think yes, then there are several short-term courses in IIDE that will help you learn about digital marketing and how to leverage its power to grow.

  • 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.

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To Conclude

E.Leclerc is one of the most successful retail chain stores in France. Through its SWOT analysis, we learned that it prides itself on being a one-stop destination for all of the family’s needs and that the USP of E.Leclerc is its low prices and great discounts. We also learned that it suffers from an increase in competition which makes it difficult to maintain a high customer base. 

However, if E.Leclerc can grab the opportunities that arise and predict threats and minimize their impact, nothing can stop it from being a leader in the retail sector. The company is left to fight it out by winning over its customers with greater marketing efforts as competition grows in a saturated industry. Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.

We hope this blog on the SWOT analysis of E.Leclerc has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of E.Leclerc, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of E.Leclerc in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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