What: French Hypermarket operators are scrambling to propose new models to customers, in the hope to create new revenues and increase their margins.

Why it is important: the IADS is advocating such a model for its members as well, as we wrote in our Exclusive in January 21: it is a way to fidelize a customer base, to increase repeat traffic, while also making the most of the wide range of services and products that are available by definition in a department store. A subscription model does not have to equate with discounts, but with relevant and interesting services for the customers.

In  France, hypermarkets and supermarkets are eyeing at the subscription model to increase their revenues and margins. So far, only Casino had launched such a model, as early as 2019, which granted customers a 10% discount for 10 euros a month.

Following the examples from Walmart or Shinsegae, in August, Monoprix launched “Monopflix”, a service with which customers get a permanent 10% discount on all purchases and free delivery, against a monthly fee of 9.90 euros.

Carrefour is now taking also example by launching a 5.99 monthly subscription fee, which gives 15% discount on their private label products.

However, such offers, proposing only a discount against the subscription, might prove counterproductive in the future with customers considering lower prices as a basic expectation. This is why additional services should be integrated, such as what FNAC/Darty does with its subscription model, allowing a free repair service, or Decathlon with bike rentals.

Hypermarkets are going for subscription models