The first store will open in early March, in Alès (Gard). The company promises reduced prices enabled by a direct contract with suppliers.
6 eggs for 1.015 euros, a bottle of champagne for 10.90 euros… This is the promise made by Fabrice Gerber, who is preparing to launch a new retail brand, called “Toujust“. This will open its first store in Alès (Gard), on March 1, but it intends to go much further, reaching 70 stores of less than 1,000 square meters on the outskirts of medium-sized towns ranging from 8,000 to 12,000 inhabitants, d by March 31, 2024. At the same time, 28 stores are also expected to open in Switzerland.
“We will be at least 5% cheaper than our competitors“, insists Fabrice Gerber. This 47-year-old Alsatian has made his career in mass distribution. He drew a simple recipe for crushing prices: reduce intermediaries. “With at least three intermediaries eliminated such as wholesalers, semi-wholesalers or central purchasing bodies, we really have the ability to be cheaper“claims the entrepreneur.
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His brand has therefore contracted directly with a hundred suppliers, who have also become shareholders of the company, with the obligation to invest with each new store opening. In return, Toujust undertakes to work with them for 20 years and will pay them 25% of the profits made. “The majority of our suppliers are SMEs with a turnover between 400,000 euros and 100 million“says Fabrice Gerber.
On the shelves, the products will be offered under white label, allowing, there too, Toujust to limit its costs. “This is necessary so that suppliers do not find themselves in a delicate situation vis-à-vis Toujust’s competitors who realize that they are paying more for the same product.“, points out Emily Mayer, director at the IRI institute.
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7500 product references will be offered to start. “As for groceries and frozen vegetables, we are still missing certain references”recognizes Fabrice Gerber. These stores in blue and yellow colors may be accompanied by certain services, such as La Poste branches and catering areas. In addition, the company also plans to develop in B to B sales, as well as in home delivery.
The business model offered by Toujust and its positive impact on household wallets could indeed attract customers, says Emily Mayer: “Suppliers will surely grant lower prices to Toujust thanks to the long-term commitment that the brand makes with them. This contract gives them visibility.For its part, the distributor hopes to convince 400 new suppliers to join it by the end of June.