Action, Normal, PrimaPrix… Discovering “soft discounters”

• The Spanish discount brand PrimaPrix opened its first three stores in the Paris region at the end of 2022, in a context where discount and "soft discount" are taking up more and more space on the French retail market.

• Food, drugstore, decoration, ready-to-wear, the French can choose between several brands to shop at low prices, such as Action, Stokomani or Noz.

• How are these brands able to offer the brand for cheap?

  What is their economic model, and will they establish themselves in the long term?

  20 Minutes

  tells you everything.

On December 20, the Spanish discount brand PrimaPrix inaugurated its third store on French soil, in Meaux, in Seine-et-Marne.

Only a little over a month earlier, on November 9 and 10, the first two opened their doors in Pontault-Combault (Seine-et-Marne) and Montreuil (Seine-Saint-Denis).

But the Spaniard is not the only one in the landscape.

Action, Normal, Stokomani, Noz: for several years, “soft discounters” have flourished both in cities and in commercial areas on the outskirts.

And consumers are responding.

In 2021, more than 11 billion euros were spent in discount-destocking stores, according to the marketing analysis firm IRI.

Food, hygiene, decoration, ready-to-wear, the credo of these brands is simple: to offer mass distribution products at knockdown prices.

An attractive offer at a time when the portfolio is hurt by the effects of inflation.

But what exactly do these stores resembling Ali Baba's cave sell?

What differentiates them from a classic retailer?

And above all, to what do they owe their success?

2

went for a walk on the shelves to find out more.

What do you find in these stores?

First of all, these “soft discounters” have in common to offer brands at low cost.

Inexpensive, or rather less expensive than in the usual supermarkets.

At the Dutch Action, you will find everything, from hygiene to decoration, including ready-to-wear, drugstore and a little "dry" food.

At the French Noz (more than 300 stores in France) and Stokomani (more than 130 stores), the offer is much the same, the big brands in addition to the latter.

All announced about 20% cheaper than in supermarkets.

The Spaniard PrimaPrix is ​​like a small supermarket.

“He wants to differentiate himself from Action or Stokomani (…) through a prism that is mainly consumer goods,” explains Olivier Dauvers, retail expert, in one of his articles devoted to the brand.

You will therefore be able to find a few fresh shelves, such as a Carrefour Contact or a Franprix.

But on the price side, “Leclerc remains cheaper, because it is 7 to 8% cheaper than its competitors, explains the expert to

.

From what I have seen, PrimaPrix is ​​about 5% cheaper”.

Finally, for hygiene and beauty, you can engage in the rays of a Normal.

You will find well-known brands and references – L'Oréal, Nivéa, Maybelline, Aussie, Garnier, Head & Shoulders, in particular.

The Danish brand, which claims a 30 to 50% reduction in its prices compared to large retailers, has around sixty points of sale in France.

What economic model are they based on?

Whether it's Action, Stokomani or Noz, the “business model” is the same: destocking.

To manage to sell toys, toothpaste, dresses, sweets or household appliances at bargain prices, these brands deploy buyers - or brokers - to negotiate directly with the brands.

Overstocks, end of series, cancellations of orders or unsold stock are all opportunities for these negotiators.

This explains why the assortment of products on the shelves changes regularly.

The story is a little different at Normal.

The Danish brand has permanent assortments.

"We make sure to have the same products all year round at fixed prices, with a few new products every week," says Sébastien Chirouze, the brand's sales director.

PrimaPrix, he "offers destocking while preserving the image of brands", says Olivier Dauvers at

.

And the brand "does very little marketing, no sales, no promotions, no loyalty card", according to the sales manager.

“Which helps to control prices”.

How do they attract their customers?

“When Action offers an iPhone cable for 1 euro, it says to its customers: “can you imagine how much your euros have value with me?

”, suggests Olivier Dauvers.

Consumers love to be made rich.

This promise is all the more audible given the economic situation, with more than 6% inflation in one year on consumer products, according to INSEE.

At the newly arrived PrimaPrix, it is the “halo” effect that attracts customers.

"If many products have more interesting prices than the average but their reduction is not huge, others are completely sold off", notes the expert.

For example, a Mir crockery at 1 euro instead of 1.49 euro in another supermarket.

"An average offer will not motivate the move, but if we add a great offer, it will."

Stokomani, PrimaPrix or Normal are targeting brand-loving consumers.

And at the last two, the store experience is worked.

“There is a reassuring side for customers: music, colors, humorous panels, major brands that bring a “treasure hunt” effect.

The experience is nice compared to the hard-discount”, concludes Sébastien Chirouze.

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