If the timing does not seem perfect under the current circumstances, a new destocking brand has however just emerged in France. Her name ? KLO. These new stores offer branded items at discounted prices, be it food, fashion or bazaar items. Around 1,500 items will be offered to customers on the 1,650 m² average surface area of points of sale, in the following categories: sweet or savory groceries, drinks, hygiene and beauty products, cleaning products or for the home, but also clothing, accessories or even household appliances or sporting goods.
Even though the coronavirus pandemic has shaken up KLO’s plans and postponed the launch date, six stores have opened since May 14, and 23 more outlets are expected to open by the end of June, a total of 29 new KLO stores. “The results of the first openings are very encouraging” assures Sophie Fécamp, communication and digital director of KLO, contacted by Business Insider France. The new sign has not planned a large-scale communication campaign, and prefers to focus on “social networks, radio and word of mouth”.
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29 former Tati stores
This new brand was developed by six former employees of the Tati group, including the former director of operations. The 29 new KLO stores are also former points of sale for the Tati brand, which were sold when GiFi was taken over. In difficulty for many years, the Tati brand was indeed taken over in 2017 by the GPG group, owner of GiFi. A major restructuring plan had been announced for the 109 stores: the only survivor, the historic Tati de Barbès in Paris in the 18th district.
In addition to the 29 points of sale taken over by KLO, 49 other former Tati stores have moved to the GiFi brand, 13 have been closed and 17 others are still awaiting a possible buyer. The new KLO brand claims to have preserved “all salaried jobs in the 29 stores formerly Tati, all staff will continue to work under the KLO banner”. On the union side, the doubt is there – a point should be made by the end of June to verify the situation, according to information from Business Insider France.
Here is the list of the 29 KLO stores which should open their doors by the end of June 2020, in place of the old Tati stores:
- Chambry / Laon (02)
- Saint-Quentin (02)
- Saint-Parres-aux-Tertres (10)
- Caracassonne (11)
- Puilboreau (17)
- Bergerac (24)
- Alès (30)
- Roques sur Garonne (31)
- Gujan Mestras (33)
- Saint-Jouan-des-Guerets (35)
- Morestel (38)
- Dole / Choisey (39)
- St Etienne (42) – old Tati Beauty shop
- Agent (47)
- Agent (47) – old Tati Marriage shop
- Cholet (49)
- Lorient (56)
- Metz (57) — Waves
- Creil (60)
- Arques / Saint-Omer (62)
- Claira / Perpignan (66)
- Paris (75) — Italy 2
- Roumare (76)
- Niort (79)
- Amiens (80)
- Avignon (84) — Mistral
- Limoges (87)
- Bondy (93)
- Fresnes (94)
A booming but very competitive market
In any case, KLO is entering a booming market for bazaar and destocking products: the turnover of the eight best brands in this sector would have increased by + 14% between 2012 and 2019, according to a Xerfi study. Action, GiFi, Stockomani, Normal, B&M (ex Babou) or even Noz, they are numerous to compete for the market. How will KLO be able to distinguish itself from this fierce competition? Sophie Fécamp wants to be confident: “what sets us apart from the brands present in the region is the proportion of brands in real stock clearance. Our customers know the prices of these identifiable products and immediately understand our price positioning”.
Daily arrivals should make it possible to renew the products offered to customers. But “the offer will be different from one store to another”, specifies the communications and digital director. The new brand will indeed be supplied via excess stocks directly from manufacturers or distributors. It wants to “favor short circuit purchases to avoid costly distribution networks”, and in particular any storage and transport costs. These distribution networks are already used by some of KLO’s competitors in France, such as Stockomani for example.
This mode of supply should allow the brand to offer products at discounted prices, “up to -70%”, says Sophie Fécamp. While most of the items will be on the shelves, it will also be possible to purchase certain items in batches for lower prices, sold directly on pallets. KLO should put a website online in August, allowing you to buy its products directly online.
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