WABEL NEWS

The Strategic Turn of Picard in 2016

February 9th, 2017 Frozen Food Market Trends

Since the arrival of Philippe Dailliez, the CEO of Picard, the company has multiplied its initiatives in terms of supply and new concepts.

Commercially, it is said that borders are abolished. After Amazon opened a “real” bookstore in Seattle, Picard also seems to bready to bring down some barriers, starting with those that initially defined the Freezer centers which only sold frozen foods.

Certainly, Picard has been offering for several years a small range of groceries, crêpes (to accompany the ice cream), croutons (for the soup) and jams. This will stimulate some impulse purchases and, above all, offer customers a few complementary items to avoid them running for chips to the nearest supermarket.

With this same logic, the brand has recently launched a wine offer. Certainly, in the size of the offer (only few labels) and in the shopping experience, Picard will never do as well as Nicolas.

But for those who are looking for a little wine to decorate their evening meal that was purchased late out of the office, it is a no-brainer.

No advice needed, the Picard bottle will have an undeniable advantage, saving time!

Expand your territory

For Picard, expanding its field of action and leaving its natural territory is an additional growth lever. Another example is the opening of a restoration space, currently under testing. However, Picard did not stop there in 2016. In fact, facing the difficulties of opening new stores in its flagship format, the retailer announced the creation of small points of sale to be closer to customers, particularly in response to increased competition from convenience stores and online home delivery. Concretely, these points of sales will occupy an area of about 120 m², which is half the size of a standard Picard store (250 m² on average).

Following the same logic, these mini-points of sale will receive half the number of references, between 400 to 500 products, focusing only on essentials. In case of success, the concept will be deployed on cities other than Paris and at a pace of around 10 new points of sales per year.

Range extensions

Picard is also working on the issue of organic products in its stores. The retailer has even engaged with the FNAB (National Federation of Organic Farming) in an unprecedented partnership, with the ambition to relocate its supplies of organic products in France. Picard aims to develop a range of organic products on a regional scale, resulting from partnerships between producers, processors and stores.

In parallel, the brand has deployed a range of gluten-free frozen food in its 1.000 points of sales. Contrary to its usual course of action, the distributor preferred to rely on brands already known to consumers of gluten-free (Schär and Amy’s Kitchen for instance) rather than launching its own label. It is true that in this niche, brands are a true criterion of reassurance for consumers. For Picard, in any case, it is a way to test this market at lower risk.

Automatic Distribution

In its quest for development, outside the walls this time, but always in a logic of proximity, Picard wants to install automatic frozen vending machines in companies. Thus, becoming the unavoidable supplier of meal solutions, an interesting and accessible alternative to the saint sandwich of lunch break. Some brands have already tried in the past, notably Fleury Michon with its “Graine d’appétit”. However, it is clear tat the aura of Picard goes well beyond.

A true brand-name self-defining as “The Meal Shop” of all meals, from the most daily to the most festive. In this sense, it is not illogical for the customer to find Picard products in his store when it comes to shopping for the house or for his company at launch breaks. As for the snack bar, there is no doubt about its success. With a full hot meal starting at 5 euros, customers will inevitably be conquered.

International: Picard strengthens in Japan

After conducting a test in 9 Aoen supermarkets, and after opening a first store in late November in Tokyo, three other stores have emerged. The stores have about 200 references, identical to those offered in France and therefore without competition in Japan. In addition to France, Japan is the sixth market covered by Picard with Italy, Sweden, Belgium, Switzerland and Luxembourg. In addition, Picard has recently initiated a partnership with Ocado supermarket in the UK.  

Florence Taillefer / Jean-François Aubry, Le Monde Du Surgelé