Addressing Inflation Drop: E.Leclerc Boss Urges Government to Renegotiate Food Prices with Suppliers

2023-07-28 19:03:00

To echo with consumers the drop in the level of inflation that has begun, the boss of E.Leclerc Michel-Edouard Leclerc called on the government to allow “go and demand from suppliers” a renegotiation of food prices for brands. of the cast.

The chairman of the strategy committee of the E.Leclerc brand asked the Minister of the Economy Bruno Le Maire to “temporarily change the law, so that we can legally go and demand from suppliers the repercussions of the wholesale markets” which are currently experiencing a slowdown in price increases.

“As long as politics only talks but does not change the law, manufacturers are not obliged to pass on these reductions”, he added, deploring that “in France, legally, we do not have the right to discuss prices between suppliers and distributors only once a year.

Against a backdrop of falling commodity prices, the government asked the 75 largest manufacturers in the sector in the spring to lower their prices and considered in mid-July that part of the effort had been made.

While food inflation was measured at 13.6% over one year in June by INSEE, the price cuts and promotions observed at 39 manufacturers remain disproportionate to the increases that preceded them.

“There will not be a massive price drop. More exactly, there will be promotions (…) to sell off unsold items from the big brands which had increased their prices too much, summarizes Mr. Leclerc, but these are ” us (the distribution brands, editor’s note), who are going to take on our margins”.

“Prices will increase less quickly” but the agreements concluded “do not give us the means to seek significant price reductions”, according to him.

“We will not find the pre-crisis prices,” said Wednesday on RTL Michel Biero, the executive director of purchasing and marketing for Lidl France. The government has “tried to encourage multinationals to come back to the negotiating table (…), nothing is happening”, he noted.

Industrialists “do not put their hands in their pockets to help deflation”, even if we should not “put them all in the same basket”, lamented Mr. Biero, pointing to the “opacity” of industrialists .

Reacting to the threats of “+ name and shame +” mentioned by the government to “name and shame” recalcitrant industrialists, Mr. Biero judged that “in any case, it is necessary to explain why they do not come to the table” of negotiations.

1690575966
#MichelEdouard #Leclerc #calls #government #demand #suppliers #renegotiation #food #prices #retail #brands

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.