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Our automation solutions allow for the distribution of individualized promotional offers for large-scale retail stores such as hypermarkets and supermarkets.
• Price of paper pulp doubled between 2021 and 2022
• Government’s OUI PUB initiative limits the access to mailboxes
• Food inflation brings the issue of promotions back to forefront for the French public
• Retailers have changed their processes to better utilize their datas
Carrefour conducts over 100 national operations annually, distributing 20 million flyers each week in France… What transition strategy is this promotional communication heavyweight adopting?
At the end of 2021, Alexandre Bompard announced a goal to shift the media mix from 8% digital in 2018 to 50% by 2022. This led to a series of tests, starting in January 2022, when Carrefour stopped distributing flyers in Paris, Lyon (Rhône), and Villeurbanne. The first lessons learned: 95% of customers did not choose an alternative method to receive promotions. Sales remained stable in three out of four stores. Thus, contactability will be central to the discussion… Maintaining reach is crucial!
Observing these three types of stores allowed Carrefour to prepare its “Zero Waste Challenge” plan, guiding customers toward four media choices (email/SMS/WhatsApp/mailbox) for receiving promotions. Despite this transitional communication, the number of people exposed to digital is still significantly lower than those with a mailbox… Moreover, the retailer does not have the email addresses of all its customers or prospects, and email open rates are relatively low (around 30%, with a click rate of around 3%).
40 % fewer paper flyers in 2023 without reducing promotional sales, and 80% digital flyers by 2024. Carrefour plans to have 300 stores go “zero flyer” by July 2023, as announced in January by Frédéric Preslot, Carrefour’s Operational Marketing Director.
Leclerc was far ahead on this topic, launching Zero Flyer by 2020 announcement back in 2010! This declaration caused an uproar among printers.
In 2021, the “Lucon” hypermarket initiated the effort, stopping distribution of its 1.8 million flyers annually.
Results: + 5% sales with the same promotional revenue. In September 2022, eight hypermarkets in Vendée followed suit.
In December 2022, E-Leclerc announced the complete halt of flyer distribution starting in September 2023.
E.Leclerc will not distribute flyers for its Spring 2024 Wine Fair. Enthusiasts will find catalogs in stores and online, but not in their mailboxes. E.Leclerc has yet to decide whether flyers will be sent to its customer base.
According to spokesperson Michel-Edouard Leclerc, this decision should save 549,300 tons of paper annually, eight times weight of Eiffel Tower.
In 2022, 48 of 152 stores in the Eastern region announced they would stop distributing promotional offers in mailboxes. By January 2023, there were 240 “zero flyer stores” representing 1 in 8 stores and 50 % reduction in paper usage by 2023 (-30,000 tons). Announced goal is that 80% of Intermarché stores will balance their media investments between paper and digital, compared to 50% in 2022. Intermarché is focusing on in-store promotional activation et les dispositifs de drive to store digitaux pour activer le trafic dans ses 1800 points de vente.
“INTERMARCHÉ wanted to deliver more targeted offers to its customers without losing creative capacity, with increasingly personalized content,” says Florian Payri, Deputy General Manager of ARISTID.
“In 2015, we were the first retailer to use paper from sustainably managed forests. We banned harmful elements that impair recycling in favor of ‘white’ inks. Today, we only work with certified printers. Properly sorted, paper can be recycled up to five times!” says Dominique Schelcher, President of Système U cooperative.
Retailer, whose network is the most rural, believes that the shift from paper to digital will take time and doesn’t want to rush its customers, especially during a period of high inflation.
“60 % of our customers still favor our flyers!” declares Dominique Schelcher. In 2023, mailbox distribution will decrease by 30%, but this primarily affects stores located in urban areas.
For LIDL France, a free mailbox is a golden opportunity. No announcements of reduced distribution! In 2021, 1 in 2 French people reportedly read a LIDL catalog.
“We need them to showcase our Everyday Low Price model and our promotions. Catalog also serves an educational purpose by presenting our range, 90% of which consists of private labels,” notes Anne-Marie Gaultier, Marketing and Communication Director.
Following lockdown, retailer stopped flyer distribution in certain areas to test the impact compared to similar zones and conducted A/B tests on digital campaigns. This involved seven test hypermarkets over a year… Based on this experiment, at the end of 2022, retailer was the first to announce a total halt to mailbox flyer distribution. Time will tell if retailer, without the media power of E.Leclerc or the digital organization of Carrefour, can make a strong enough impact locally to counter its competitors and maintain its traffic.
Auchan is betting on maintaining customer contactability through messaging and local communication. Alcméon and Bonial are supporting this transition with help of store teams to convert customers to digital promotions!
Between March and May 2021, over 1.5 million Auchan flyers were viewed by Bonial’s audience, with an average consultation time of 1 minute and 40 seconds. Retailer is leveraging this engagement to generate more in-store traffic.
According to LSA, 28.5% of catalog and flyer readers visited an Auchan store within seven days of viewing a catalog on Bonial.
Although retailer announced zero-flyer goals, it will take some time before its promotional strategy becomes clear.
As early as 2019, Monoprix announced it would stop flyer distribution for its 30 million units annually. Flyers accounted for 10% to 15% of retailer’s marketing budget, even though 90% of them were discarded before being read… if they even reached mailbox, which is a significant challenge in city centers. Trading area is a crucial factor in success of zero-flyer initiative!
