Monoprix is the first retailer in the down towns of big cities in France. Indeed, Monoprix is present in 80% of the cities of more than 50,000 inhabitants.
- Growth in sales:
Monoprix's turnover increased by 4.4% in 2006 and by 3.5% in 2007 reaching a level of 3.56 billion Euros. Its profits increased by 7.5% in 2007, the double of Carrefour. Monoprix registers high margins since it has increased its prices by 6.1% in average since 2004.
- Productivity:
Monoprix recognized an increase in its labor productivity, its work force represents only 5.4% of the turnover. This productivity also comes from an efficient supply chain. All the stocks are managed in time thanks to software of speech recognition and radio equipments for all the warehouses.
[...] Furthermore, with the decrease in the purchasing power and the current economic crisis, people can think that Monoprix is too expensive and be attracted by the lower prices of its competitors. Labor costs The labor costs in Europe have been increasing for a couple of years. In 2008, labor costs increased by in the third quarter. An increase in labor costs means an increase in production costs and a decrease in margins, but Monoprix still makes profits, thanks to its productivity. [...]
[...] ( Decrease in margins Monoprix knew a decrease in its commercial margin of between 2007 and 2008 due to the competition of Champion which competes in the same segment.[8] Opportunities ( e-trade Monoprix launched its website for e-trade in September 2008. It is an opportunity because these kinds of cybermarkets require less investment in capital and 11% of internet users, that is to say 3 million people bought a food product since June 2008.[9] Monoprix can conquer a huge potential market which is developing rapidly. [...]
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