October 16, 2021

Carrefour, Casino, Leader Price … Why these brands want you to pay a subscription

Subscribe and pay less. After Casino, Leader Price and Monoprix, Carrefour will in turn test this subscription offer to build customer loyalty.

Will the Amazon model impose itself in mass distribution? The e-merchant who launched its Prime subscription service in 2005 seems to have had little success.

Within two weeks, Carrefour will indeed launch in 21 of its stores located in the Rouen region a non-binding subscription service which gives access to discounts on its products.

The objective is to retain customers who tend to switch between the different brands in their catchment area.

“Once he has agreed to pay 6 euros, his obvious interest is to do the maximum of his shopping at Carrefour to take advantage of the 15% discount, estimates Olivier Dauvers, consumer expert. So not only that. keeps customers in the Carrefour ecosystem and that will lead to products that are nevertheless more profitable than the big brands. “

Private labels (private labels), although marketed at more attractive prices than major brands, allow retailers to achieve better margins. Gross margins (difference between purchase price and sale price) are on average 20 to 25% for national brands against a rate of 30% for private labels.

A subscription model that is not unlike that of the American giant Costco. The sign, which is only accessible to subscribed customers ($ 60 per year), is one of the most successful commercial successes in the United States of recent decades.

The revenge of medium-sized brands?

Arrived in France in 2017, the American is struggling to break through. In four years, the brand has so far opened only one of its warehouses.

However, the model inspires distributors back home. In 2019, Casino launched “Casino Max Extra” which allows 10 euros per month to benefit from 10% on all products sold in stores. Monoprix has just unveiled Monopflix, which allows you to enjoy the same advantages. And Leader Price launched Le Club Leader Price in April to benefit from a 10% reduction on its deliveries.

One way for brands that have less wind in their sails to regain market share.

“This subscription system is the loyalty of average retailers, analyzes Olivier Dauvers. Retaining the consumer to oneself is because we are not convinced that they can come without a carrot. And somewhere is to recognize it by putting a carrot on the table in exchange for a subscription. “

If the experience is conclusive for Carrefour, it will extend to the whole of France.