The German giant of discounters TEDi, specializing in everything at 1 euro, should open its first store next spring in Normandy, before expanding to the rest of France.
In the field of discount, brands continue to multiply on French soil! Action, Noz, HEMA, Gifi, Stokomani or more recently the Danish Normal… It’s the turn of the German giant TEDi to set up shop in France: and it’s coming very soon! The brand’s first “Everything at 1 euro” store will open in Evreux, Normandy, next spring. It will be quickly followed by 10 other stores which will be deployed by 2024 in the north and west of France.
The TEDi brand is already present in 11 countries around the world with more than 2,700 stores. It takes up the concept of American “One-dollar stores” in its own way, offering in its stores nearly 15,000 references ranging household items, decoration, DIY, toys and cosmetics. A bric-a-brac at bargain prices that attracts its public, especially in this period of inflation. In France, nearly 4,000 hard discount outlets share the market. A constantly rising number which should increase further with the arrival on the market of the brand whose mascot is a teddy bear.
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How do ultra discount stores manage to offer such low prices?
It’s hard to imagine how these shops can afford to offer such inexpensive products. For Olivier Dauvers, consumer specialist interviewed for a report on the TF1 JT in September 2020 “discount brands have taken up the historical rule of commerce: bring the customer for 1 product and sell him 10.” Entering one of these shops is the assurance of leaving with many more items than you came to pick up, reassured by the prices defying all competition.
Optimized sales figures therefore, but above all reduced costs from supplier level. Do not look too much at your carbon footprint by buying from these brands: most products are made in Asia where labor is very inexpensive. Other techniques are also used to reduce costs as much as possible. Parallel supply already: via mass destocking, end of series, unsold stock or even court-ordered liquidations. But it is also possible for these brands to save by buying in very large quantities.
For Action, for example, the brand buys en masse from the Netherlands by negotiating unbeatable prices. They also took advantage of a technical innovation for the transport of products. With semi-trailers enabling the transport of nearly 60% more goods. Finally, the communication budget is quite lower, most of the going through word of mouth and social networks.
