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Leclerc, fearing Amazon, to launch Paris food delivery service

Reuters  |  PARIS 

By Dominique Vidalon

PARIS (Reuters) - Privately-held French Leclerc said on Tuesday it would launch a delivery service this month, stepping up its offering in the face of competition from and domestic rivals.

Amazon's purchase of upmarket U.S. chain last year has prompted speculation the could focus on the European and supermarket sector next, with some analysts seeing as prime target.

"We will rise up to the challenge, starting with home delivery are the kings of logistics, the kings of IT and algorithms," told Info radio. "But I have a trust relationship with consumers. I think commercial policy will prevail."

Leclerc has overtaken as the leading in by market share, partly because its prices are typically lower than its rivals.

The new service, to be called 'Leclerc Chez Moi' (Leclerc To My Door), will be launched on March 26 in northern Paris and from May 15 in the south of the city.

It will price products at 15-20 percent below those of competitors with a goal of generating revenue equivalent to a hypermarket in the first year.

"The Leclerc division is coming to Paris and it will free up prices," Leclerc said in reference to the French 2nd Armored Division, headed by (not a relative), who liberated Paris during World War Two.


Questioned about the impact of Leclerc's plans on the performance of its Franprix and convenience stores in Paris, Casino told analysts last week he was not overly worried.

"The Paris is worth 7 billion euros and Leclerc thinks it can generate a of 170 million euros. This will have a limited impact of 1 percent on the revenue of and Franprix," he said.

Amazon, which has run its Prime express delivery service since 2016, is steadily building up its presence in France. Privately-held French recently disclosed it was in discussions over a grocery supply deal with Amazon.

Faced with the challenge from the U.S. giant, France's retailers have been looking to improve their

In January unveiled plans to boost its and said it would seek a partnership in with In November, Casino said it would use British Ocado's to help expand.

(Reporting by Dominique Vidalon, Brian Love; editing by Luke Baker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 17:12 IST