France: Toujust the new French discount chain
Discount Retail Chain Toujust is set to open its first store in Alès, in the Gard region, mainly selling private-label products, according to media reports. Toujust is the brainchild of Fabrice Gerber, an experienced manager in the retail trade, formerly of E. Leclerc, Système U and Aldi.
It will function as a cooperative, with four main shareholders: Gerdis (Fabrice Gerber's company), RT Logistique, Mila Capital and Val Invest.
In addition, Toujust works directly with suppliers to secure lower prices for shoppers. It also shares 25% of its profits with producers and suppliers directly and cuts out as many ‘middlemen’ as possible.
Significantly, there will be no intermediaries between the distributor and producers, as well as no central purchasing office, which the retailer hopes will enable it to offer reduced prices and operate a lower cost base. It plans to set up shop on the outskirts of medium-sized towns in France, with population ranging between 10,000 and 12,000.
Toujust promises to offer prices up to 10% cheaper than other brands via a supplier partnership model. The store’s margin is 28%, which it uses to calculate its prices.
The name Toujust is a play on the French phrase ‘tout juste’, which means ‘all fair’ or ‘just right’.
Consumer prices will be at least 5 - 10% cheaper than those offered by competitors, Gerber said. The difference could be significant for some items, especially as a 2022 study showed that the same basket of goods can vary by as much as 17% depending on brand and location.
Store Expansion Plans
A dozen stores are set to follow in the first half of 2023, in Monéteau (Yonne), Cambrai (Nord), Lempdes (Puy-de-Dôme), Lens (Pas-de-Calais), Montauban (Tarn-et-Garonne), Terrasson (Dordogne), Saint-Quentin (Aisne), Saint-Maur (Indre) and Arbent-Oyonnax (Ain).
The company plans to open approximately fifty stores by the end of the year, and 300 within five years.
Each store will be spread across approximately 1,000 square metres and offer 7,500 SKUs, 80% of which will be food, including 45% in the fresh category. The company will mainly sell its own brands and rely on 100 small suppliers. It is advertising prices that are 5% to 10% lower than its direct competitors.
See here for more: New low-cost supermarket in France aims to sell at up to 10% cheaper (connexionfrance.com)
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