3.5.1 Tunisia Food Suppliers Overview Retail Sector Wholesale – SUPER MARKET CARREFOUR Overview Food and nutrition security concerns not only food issues strict sense, but also different areas that fall under development, global peace and security, as set out by the SDGs. The study is also based on a fundamental assumption that food and nutrition security is inseparable from agricultural security. During the last two decades, Tunisian agriculture has made significant progress, in particular by achieving self-sufficiency in certain products (milk, meat, fruits and vegetables), by limiting dependence on imports and by establishing itself on external markets. thanks to products with a good quality / price ratio. Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources: WFP Vulnerability and Analysis Mapping (VAM): (https://dataviz.vam.wfp.org) USAID Famine Early Warning Systems Network (FEWS NET): (http://www.fews.net/) Supplier Contact List. http://www.made-in-tunisia.net/annuaire/agroalimentaire-3.html Annuaire link: http://www.tunisieindex.com/annuaire-entreprises/agriculture-agro-alimentaire-1/alimentation-animale-27/ Retail Sector The sector of stores, mini-markets and specialized supermarkets play an important role in the economic development of a country. And this despite difficult economic conditions such as declining consumer purchasing power or inflation. In Tunisia, mass distribution has experienced a change of landscape since the opening of the Carrefour and giant hypermarkets more than a decade ago. Since then, some supermarkets have struggled to cope with unfair competition in the parallel market. Zoom in on the performance of this sector. Presentation of large-scale distribution in Tunisia: In Tunisia, 4 large supermarket chains hold 20% of trade. They are Giant, Carrefour, Monoprix and Magazine General. The Monoprix brand, which was created in 1933, employs 3,610 people in 87 stores throughout the territory. Its stores located in several cities of the governorates were purchased by the Mabrouk group in 1995. The company listed on the stock exchange since March 1995 stands out with its gifts and promotions of up to 85% as well as cash. of 85 00 dinars for the 85th anniversary. The General Store, meanwhile, posted a net profit of 22.13 million dinars in 2017, an increase of more than 82% compared to the previous year. The turnover of the company also increased by 2.12% from 2016 to 2017. The same goes for the group's result which rose to 10.43 MD in 2017 against 5.81 MD for the year. former. This brand belonging to the Bayahi and Poulina groups employs 4,000 people. It is present in 91 points of sale. The cause of this increase in MG turnover is the choice on the sale of products that bring more margin than others. It also adopts a very competitive pricing policy in addition to the sale of exclusive products. The brand is also managing to do well by trying to control its inventory, brands and retail operations. As for Giant, this brand comes from the association of the Mabrouk group and the French group Casino. It is also the largest Tunisian hypermarket. In addition to its 12,000 m2 of retail space, it has 13,000 m2 of storage space. Another Giant hypermarket will also be built in the southern suburbs of Tunis. Finally, the last Carrefour brand founded in 2001 is a subsidiary of the CHABI group. It operates in 3 distribution sectors: Carrefour hypermarkets, Carrefour market supermarkets and Carrefour express supermarkets. It has a network of around 40 supermarkets and 30 mini markets, a total of 74 stores. Its share in the large-scale distribution market is estimated at 34%. Another Carrefour hypermarket creation project is also underway in the Sahel regions, not far from the city of Sousse. Let us also mention the latest addition to the market, the hard-discount chain. Aziza will have to be named among the mass distribution although it refuses to be categorized in this list of supermarkets because it considers itself a retailer. This chain, founded in 2014, belongs to the SLAMA group. It is made up of 91 points of sale. It specializes in selling low prices and shows a cumulative loss of 53 MD. Retail and economy in Tunisia: Consumers, employees, suppliers of food and consumer products, public authorities all benefit from large food distribution. The presence of these stores increases the purchasing power of consumers while creating employment opportunities. In Tunisia, this sector of large and medium-sized surfaces still benefits from the extension of the application of an exceptional direct tax rate of 25% for this year 2019 while it is already recording a significant profit due to the time lag between cash collection of sales and deferred payment of purchases. However, supermarkets are still asking to reduce the corporate tax rate from 36% to 13.5%. Note that the 35% hypermarket tax hike is postponed for next year in order to stabilize inflation at 7.4% until the end of the year. The state is aware that the application of this increase in corporate tax could reduce investments and at the same time benefit the parallel market. In addition, the fact of reducing the customs duties on the import of butter also caused apprehension of the deputies of the opposition about a maneuver aiming at causing a shortage of this consumer product in order to be able to import it. then. Expansion and future of mass distribution in Tunisia: The population of Tunisia is estimated at 11.16 million in 2015. The urbanized population is estimated at 66% with a density rate of 71.5 inhabitants per km2. The majority of business centers are located in Greater Tunis. And according to a study, the inhabitants of these regions are the biggest consumers of supermarkets and mass distribution stores. They buy 51% of their food products from these stores. This trend is explained by the improvement in the standard of living of the citizen and the impact of advertising. Increased income improves the purchasing power of households. As a result, the amount spent on food is more important. Commercial advertising also has an influence on consumer consumption. In addition, the liberalization of the Tunisian economy also helps to boost this sector. Indeed, after a long period focused on price controls, the imposition of high tariffs, and import restrictions, Tunisia has decided to adopt another policy. This development dynamic revolves around openness to trade and economic liberalization. Opting for price liberalization has made it possible to bring greater visibility to the products of entrepreneurs while attracting investors. Producers can also improve and diversify their product offerings, whether in terms of quality or price. The advance of local agro-food production is also one of the factors favoring the development of brands. Because if the food industry cannot meet the needs of large-scale distribution, these stores would have to import products, which would impact their profits. Page 1 Retail jobs in Tunisia: This sector is not like the others because it still continues to recruit even in times of great crisis, the majority of jobs with low wages. Hiring in these stores can be on an open-ended, fixed-term, or part-time basis, and most of those hired are women. Jobs as area managers, cashier, assistant store manager, general-purpose employee, receptionist, self-service employee, salesperson, self-service department employee, etc. are available. Women and students are the most represented in part-time jobs and the majority are under 35. There are also executive jobs such as recruiting manager, accountant, human resources manager as well as warehouse jobs such as delivery person, order picker and staff ensuring the security and cleaning of the store. Types of Retailers Available Type of Retailer Rank (1-5) Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing 4 power; are often part of national/regional/global chains. Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable 4 purchasing power; may be part of chain or cooperative. Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of 5 brands; good storage and reliable supply options. Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; 5 limited storage and unstable supply options. Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be 5 found at outdoor markets, camps or unstable environments. Wholesale – SUPER MARKET CARREFOUR The French group Carrefour is starting to transform its 43 Champion brands into Carrefour Market. Objective: to gain shares in the almost new large-scale distribution market in Tunisia, where the city-dwellers still mainly consume in a traditional way. TUNISIA. Building on the success of the transformation, which began in 2007, of its Champion stores into Carrefour Market in France, Brazil, Spain and China, the French retail group Carrefour is now targeting Tunisia. By the beginning of 2010, the 43 points of sale deployed under the Champion brand, in association with the Utic group (Ulysse Trading and Industrial Companies), will become Carrefour Market. "Since October 28, 2009, nine Champion supermarkets have changed their signage. Five are located in the Tunis region, the other four in Gafsa, Mahdia, Grombalia and Sousse", specifies Mehdi Dellech, sales manager of Carrefour Tunisia. The new brand offers a wider product selection than Champion, including non-food items such as clothing, linens and home décor items.