An answer to the discounters

The concept is based on a clear segmentation of product categories and an emphasis on low prices. For in France, a good price positioning image is essential for stores that want to hold their own in a particular catchment area. However, this is a risky business for independent operators in the light of the market power of multiples like Brico Dépôt, or in competition with the customer awareness of sales channels like Bricomarché, where pricing is the crowd puller.
Le Club, the central services organisation of Les Briconautes with around 400 stores managed by independent operators, profited from the opening of a new 2 730 m² store at Guéret last summer to launch a new concept known as “Les Econautes”. This covers the entry-level price ranges and, at the same time, incorporates discounting through a clear segmentation of product categories and positioning of cut-price articles on the lowest shelving level. “This is our response to the competition, we simply had to find a solution to enable us to stand up to the discounters,” is how store operator Hall Masterton explains the motivation behind the new concept. Brico Dépôt is located in Montluçon, approximately 50 km away from Guéret. “The concept can also be applied in other contexts, however. It is an opportunity to say to customers that we can satisfy their needs if they are looking for the best prices.” The only requirements are a minimum of 1 500 m² and a readiness to invest € 15 000 in implementing the concept.
The Briconautes have developed Econautes as a price-positioning concept.
“A new feature of the Guéret store is the presentation of the individual product categories; this includes easily recognisable wooden containers positioned at floor level and offering the entry point products in that category, which provide excellent value for money,” explains Philippe Obry, managing director of Le Club. Located directly above them are middle-of-the-range articles, with the Briconautes private-label products (4 000 articles) positioned close to the manufacturers’ brands.
The aim is to offer a simple system that consumers will quickly grasp. Every product family, from paint to hardware, has its place in this concept, where the products on a given level are generally 15 per cent cheaper than one level further up.
Several months later the project seems to have been carried through, although only with success for 50 per cent of the assortment. The Guéret store has achieved its objectives, even if certain adjustments…