Strategic Pricing: How E.Leclerc Stays Competitive by Delaying Price Increases

2023-10-01 17:33:00

Michel-Edouard Leclerc explained on LCI Sunday that the price increases granted to industrial suppliers of E.Leclerc centers are only passed on in stores after a period of three months, allowing the distributor to be more competitive during this period, relates The voice of the North.

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Pour « any price increase from a supplier, we wait three months before applying it », declared Michel-Edouard Leclerc, president of the strategic committee of the Leclerc distribution group.

« So we have three months of better prices compared to competitors who apply it » in the shortest possible time, and “ the consumer, when he sees the comparative , he will immediately see the difference, even compared to Lidl, Système U, or Intermarché “, he continued.

By following this roadmap, Michel-Edouard Leclerc details having won “ 800,000 additional customers in Leclerc centers since January ».

Supermarkets negotiate each year between December and March 1 with their agro-industrial suppliers the conditions of sale of their production which will then be sold on the shelves.

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The government presented a bill to the Council of Ministers on Wednesday to bring forward the date of negotiations between distributors and the 75 largest manufacturers, such as Danone, Coca-Cola, Lactalis or Heineken for example. The objective of this measure would be to reflect the reductions in a certain number of wholesale prices more quickly in the sales prices on the shelves, by ending the negotiations on January 15, instead of the usual March 1.

Until now, the price battle between manufacturers and distributors was played out against a backdrop of galloping inflation, while prices have now started to fall, although inflation is still at a high level.

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