Understanding everything about supermarket distribution

Large and Medium-sized Supermarkets represent a strategic choice for many companies wishing to expand their presence in the market. And with good reason: the food retail sector accounts for approximately 258 billion euros in revenue (Xerfi, 2025) and represents more than 750,000 jobs, or nearly 8% of French GDP. It is also a highly concentrated market: 6 groups (Carrefour, Auchan, E.Leclerc, Casino, Les Mousquetaires, and Système U) alone capture nearly 85%, according to Je Bosse en Grande Distribution in 2026.

Being listed in GMS offers access to a massive potential audience. In addition, increased visibility on shelves, prime locations in the store, and promotional campaigns help build your brand awareness.

However, be careful: selling in GMS is not all rosy. Certain power dynamics can complicate your negotiations and make activating point-of-sale displays harder than it seems.

‍Who are the players in GMS? How are relations structured between retailers and brands? How are roles shared? Find the answers in this article.

What is distribution?

We want to start with a reminder of the basics. Distribution is the intermediary between the consumer and brands (which can also be the producer). It is the link that connects the two ends of the chain, making it indispensable. Very few markets manage to do without distribution.‍

Why? Because central purchasing agencies and buyers secure access to a market and a target audience for brands through a physical or digital network, along with its marketing strategy. They reduce the costs of making products available by managing invoicing, logistics, storage, etc.

‍For its part, the distributor must offer the right products, at attractive prices, in the right quantity, and at the right time to consumers, so that they buy.

‍As you can see, you cannot avoid distribution. That is why you have to choose carefully. Selecting a distributor means targeting a customer base. And that can have significant repercussions.

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The players in GMS

The brands

Brands are producers who sell under a distinctive sign or a combination of distinctive signs (Name, logo, color, scent, etc.) to consumers.‍

Brands want to sell as many products as possible and at the prices that are most advantageous to them. Nothing new so far, they are businesses like any other.

A brand's mission is to create a product or range of products, manufacture it in the right quantity, make it attractive and visible through marketing, so that the consumer buys it, tries it, approves it, and recommends it.

Here is a slideshow of the biggest brands, to perfect your GMS knowledge.

The 10 largest GMS industrial manufacturers

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What are the best-selling brands in the world?

Every second, 17,360 bottles of Coca-Cola are sold worldwide. That represents about 1.5 billion bottles per day! That is far too many for us to count. The red and black bottle certainly deserves its first place in the ranking.

On the podium of the best-selling food brands in the world, we then find:

1. Maggi

2. Lay’s

3. Pepsi

4. Nescafé

5. Indomie

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And in France?

Well, we'll let you guess the leader among these logos: ... No cheating, okay? ;)

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Unsurprisingly, the French ranking is not the same. It is not the American soda leader that takes first place, but rather Herta that comes out on top.

French people's favorite brands‍

Among these brands, which ones are most appreciated by the French?

According to the 2026 Observatoire of French people's favorite brands (OpinionWay), food favorites dominate more than ever. La Laitière takes back the lead in the ranking for the third time after 2017 and 2023, ahead of Saint Michel and Samsung, the only technology brand on the podium. BIC, number one last year, drops to 5th place, just behind Panzani.

A sign of a true return to "comfort": 21 of the top 30 brands are food brands, driven mainly by groceries. A trend that OpinionWay interprets as a response to an uncertain economic climate, where everyday brands play a comforting role. Here is the complete Top 30:

1. La Laitière

2. St Michel

3. Samsung

4. Panzani

5. BIC

6. Bonne Maman

7. Amora

8. Barilla

9. Moulinex

10. Lustucru

11. Amazon

12. Lindt

13. Alsa

14. LU

15. Nestlé Dessert

16. Google

17. Magnum

18. Le Petit Marseillais

19. Decathlon

20. Cristaline

21. Danone Natural Yogurt

22. Président

23. Elle & Vire

24. Tefal

25. Maille

26. Yoplait

27. Bosch

28. Ducros

29. Vahiné

30. Côte d’Or

French people's favorite brands (2026 vs 2023)

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The retail chains

Retail chains are the corporations that group a set of points of sale directly or through affiliation.‍

There are two major types of retail chains in the French landscape:

• Independent retailers: store owners who own their points of sale, joined together in a group to pool purchases, tools, and marketing.

• Integrated retailers: points of sale that all belong directly to the brand, with salaried staff.

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The different types of GMS stores (large retailers)

‍Stores are characterized by their sales floor areas and their assortments. Location can also be taken into account. We will distinguish between general food retailers and specialized food retailers.

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Chart showing the number of points of sale in France by GMS store type

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The importance of distribution

As you can see, distribution is key to business success. Without it, there is no economy. Indeed, the producer designs. They identify potential customers and manufacture the first product samples. They iterate, validate, and package their products. Once out of the factory, it still has to be commercialized, which means distributing it.

And distributing a product is no simple task, as it requires considerable expertise and investment. If every brand group, like the clothing industry, created its own distribution network, there would be Nutella, Ariel, Colgate, and Herta shops everywhere.

‍In reality, this would not be profitable. That is why it is more logical to use a distributor. Outsourcing distribution reduces various costs associated with making products available on the market, such as storage and transport costs, as well as sales expenses related to prospecting and negotiating, for example.

‍Distribution is the essential link between the producer/brand and the consumer. It guarantees brands access to a market and a client base through a physical or digital network, along with a marketing strategy. It also reduces the costs of making products available by managing billing, logistics, storage, etc.

‍We can summarize a distributor's contribution to a producer in four areas:

• Space: services related to transport of goods

• Time: storage

• Merchandising: the correct presence of products in the right quantity, etc. To learn more, I invite you to read our complete guide on merchandising.

• Communication: the distributor's image to the producer's potential target audience

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Distribution policies

Do production capacities and product characteristics favor distributing products intensively, or should it be limited to a certain number of points of sale?

Thus, three options are available to the producer: intensive distribution, exclusive distribution, and selective distribution. In GMS, only intensive and exclusive distributions exist.

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What is intensive distribution? (GMS)

Intensive distribution is defined by selling to the greatest number of people in the greatest number of points of sale. This type of distribution is used in GMS in the majority of cases.

What are the advantages and disadvantages for brands selling through intensive distribution?‍

Intensive distribution allows brands to gain visibility faster, and thus, generate significant revenue. Indeed, sales volumes are much larger in supermarkets: 83% of food purchases in France are made in GMS.

In addition, building brand awareness through intensive distribution helps support other distribution channels, such as digital channels. However, it also has disadvantages, notably:

1. High and annual listing fees;

2. Store activities driven by a significant sales force;

3. Substantial advertising and promotions;

4. Mass-market product features;

5. Low unit margins (and potentially degressive margins)

What is exclusive distribution?

Exclusive distribution is defined by selling exclusively in a territory or through a single retail chain. This distribution policy can be a negotiation point often requested by retailers from small brands wanting to enter mass retail for the first time. Monoprix often uses this clause. It is somewhat of an entry cost to the market.

Distribution channels

Two types of distribution channels exist in GMS / GSS (Large Specialized Supermarkets):

• Direct distribution: there is no intermediary between the producer (the brand) and the store. This means that the distributor sells, delivers, and bills the store directly.

• Indirect distribution: there is an intermediary between the producer (the brand) and the store, which is usually a central purchasing agency. This means that the central purchasing agency buys, sells, delivers, and bills the store.‍

Focus on direct distribution

Direct distribution removes any intermediary from the distribution process, leaving the brand to sell directly to stores. This brings both advantages and disadvantages for the brand.

The advantages of direct distribution

Direct selling offers almost complete autonomy to brands, providing them with:

• Excellent knowledge of their target customers' needs;

• The ability to quickly launch new products;

• Customization of the services offered;

• Control and partial preservation of the margin;

• The opportunity to open an official store.‍

The disadvantages of direct distribution

Direct distribution nevertheless imposes constraints on brands, which need to be taken into account, such as:

• A very large inventory to store;

• Heavier sales management for teams and stores;

• A significant need for financial capacity;

• An often more limited product offering.‍

The specificity of selling through central purchasing

A central purchasing agency is a structure that groups and negotiates purchases for several points of sale or retail chains as a single contact. It aggregates volumes to obtain better terms from suppliers, then passes listings and pricing on to the network's stores.

Selling through central purchasing, also known as indirect distribution, presents a distinct set of advantages and disadvantages that shape how companies approach this type of distribution.

The advantages of selling via a central purchasing agency

The main function of central purchasing agencies is to centralize all purchases of different products in a single point. They have a broader reach, which brings many advantages to the brands they distribute, including:

• The capacity to sell larger volumes;

• A smaller required sales team;

• Denser geographic coverage;

• Better sales regulation;

• Flexibility in financing production;

• Reduced management costs, particularly regarding invoicing and transport.‍

Do you want to sell via a central purchasing agency? Discover how to negotiate with mass retail.

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The disadvantages of selling via a central purchasing agency

Central purchasing agencies, due to their power, can also present disadvantages, notably regarding:

• The risk of losing connection with consumers;

• Loss of contact with retailers;

• Wholesaler disloyalty;

• The growing need to promote products to intermediaries and retailers.