The French retail market continues to feel the strain despite broader signs of economic easing. According to Kantar research, FMCG (Fast-Moving Consumer Goods) spending remained virtually flat in 2024, growing just 0.3%. While deflation has been in motion since June, shelf prices remain noticeably high; 90% of shoppers haven’t observed any drop, reinforcing the disconnect between economic indicators and lived experience at checkout.
As shoppers grow more cautious (70% say they don’t feel like spending), retailers are under pressure to respond to deep structural shifts in shopping behavior, brand perception, and household needs.
Consumers Continue to Hunt for Value
The dominant theme in France’s FMCG landscape is value-seeking. Consumer habits shaped during two years of inflation are sticking: French households shop more frequently but buy less each time. Private-label brands continue outperforming, making up nearly 40% of FMCG-FLS budgets across mainstream channels and gaining 0.6% in value share in 2024.
Branded goods are bearing the brunt of this shift, particularly in categories like beverages, beauty, and cleaning products. The most significant year-over-year declines include:
- Soft drinks: -5.1%
- Beauty & Hygiene: -3.4%
- Fresh products: -1.5%
- Cleaning products: -1.8%
While food transitions (such as organic or sustainable items) are slowly recovering, organic spending is still under pressure, showing only modest signs of growth in late 2024.
Social Divide and Shopper Fragmentation
French society’s growing income divide is clearly reflected in shopping behavior. While wealthier households increased their spending by 0.6%, middle-income families, blue-collar workers, and farmers cut back by 3.2%. At the same time, 20% of households now struggle to make ends meet, up 2 points from 2022.
This divide is also evident in channel choice. E-commerce, convenience, and specialist retailers are gaining ground, while traditional hypermarkets and supermarkets are losing volume. For example:
- E-commerce: Market share rose to 10.3% (+0.7%)
- Convenience stores: Increased to 7.8%, boosted by the Olympics
- Specialist stores: Value sales up 4.3%
The French Retail Market Shakeup: Consolidation & Channel Repositioning
The French retail market is rapidly shifting. More than 700 stores, including major players like Casino and Cora, are undergoing rebranding or ownership changes.
By 2030, independent retailers could capture up to 60% of the market, driven by these acquisitions and a growing consumer appetite for channel diversity and category-specific value.
Spending on sustainable products ticked up slightly by 0.2 percentage points, now comprising 20.9% of FMCG-FLS budgets. As the market recovers, this space offers long-term growth potential – especially if brands can communicate value and impact clearly.
How Publitas Can Help Retailers Adapt in France
With such complex and evolving dynamics, retailers need tools that let them act fast, speak directly to consumers, and adjust content in real-time. Here’s how Publitas supports French retailers navigating this environment:
1. Power Private-Label Promotion
Use digital catalogs to spotlight your store brands with beautiful, shoppable layouts. Highlight savings, bundle offers, and comparison points to show value.
2. Connect With Value-Conscious Shoppers
Publitas enables targeted product segmentation and personalized experiences based on shopper behavior and preferences. Drive traffic to affordable, comfort-driven, or meal-based categories that are seeing growth.
3. Support Sustainability Messaging
With dynamic content features, Publitas lets retailers call out eco-labels, sustainable packaging, and product origin. You can even add storytelling banners or interactive elements that educate and inspire without overwhelming.
4. Optimize for New Channels
Whether you’re investing in e-commerce, convenience formats, or specialty categories, Publitas makes it easy to create consistent, conversion-ready content across channels – from your website to email to in-store screens.
5. React to Real-World Trends Instantly
Run short-term campaigns around events like back-to-school, showcase seasonal assortments, or pivot messaging during times of political or economic uncertainty, all within the Publitas platform.
Conclusion: A French Retail Market Reset
2024 has been a year of resilience and recalibration in the French retail market. Consumers are cautious, fragmented, and deeply value-focused. Private labels are thriving. And new retail models are reshaping where and how people shop.
As 2025 unfolds, retailers delivering affordability, flexibility, and clarity (especially in digital channels) will be best positioned to grow. With Publitas, French retailers have a partner ready to help them meet shoppers where they are while staying agile and authentic in a changing market. Book a demo today to discuss your next move.
