2023-08-26 05:13:00
©IPM GraphicsThere really is no comparison: shopping up to 44% cheaper in France than in Belgium! (COMPARATIVE)
political action
First observation, the pressure put by the French government and distributors to force suppliers to return to the negotiating table has borne fruit. The top 75 large manufacturers, which represent 80% of the market, agreed to play the game and the first price reductions were observed on the shelves in early July. This continued throughout the summer and France’s competitiveness once morest Belgian supermarkets increased further. On the Belgian side, Minister Dermagne has tried to harden the tone, inviting suppliers and distributors to also renegotiate prices to pass on the lower costs of certain raw materials (cereals, vegetable oils, milk, etc.) and the price of energy, but without much success since prices have not changed.
Price monitoring
In mid-July, the Minister of the Economy also activated price monitoring (via the Price Observatory) while brandishing the threat of sanctions. In the event of abnormal price trends, a report is made to the Belgian competition authority, which may decide to open an investigation and take action. Among these, a price freeze is not excluded. In view of our price survey, it is clear that prices have hardly evolved in the right direction on the Belgian shelves. Out of 30 products analyzed, 9 saw their prices increase, 16 remained at the same level and 5 fell, mainly in the fruit and vegetable section depending on seasonal products.
Greedflation
The situation is quite different in France, where out of this basket of 30 products, only three have seen their prices increase, 11 have not undergone any variation and 16 have a lower price. Why is what is possible with our neighbors not with us? Part of the answer is to be found in the renegotiations (which we did not carry out here), but it does not explain everything. Especially since some products saw their prices increase in Belgium while they were falling in France. Oil, for example, whose prices were expected to decline, did not follow the same movement on either side. The first-price bottle at Colruyt went from €5.62 to €5.99 while, at the same time, at Auchan, its price fell from €6.09 to €5.79. The match won by Colruyt in early July therefore turned to Auchan’s advantage. For some parties (PS and Vooruit), it is necessary to impose maximum prices for foodstuffs in order to counter the phenomenon of Greedflation (suspicion of taking advantage of inflation to increase prices excessively). A proposal which, however, has little chance of succeeding.
The big gap: up to 117% more expensive in Belgium
If we go back to our shopping list, going through the savory grocery store is the guarantee of saving money in France. The six products in our basket are cheaper there in France, with price differences ranging from 3 to 108%. Let’s continue our shopping at the sweet grocery store. Again, full box. With the exception of Nutella, which stays less in Belgium, all our purchases are cheaper. It is also surprising to note that in the space of a few weeks, the price of Côte d’Or chocolate has not budged in Belgium, while it has fallen by… 72% in France! It is also easy to understand why Belgian shopping carts are filled with dairy products and drinks. With the exception of milk, all compared products are cheaper there. And, in the majority of cases, the prices vary from simple to double.
Fruits and vegetables: the exception
Finally, it is in the fruit and vegetable section that it is imperative to take out the calculators. Just like during our visit at the beginning of July, we notice that the match turns to the advantage of Belgium. And often with great price differences, also around 50%. Note that this is the area where price volatility is greatest and therefore sometimes less relevant. Excluding the purchase of fruit and vegetables, our French basket amounts to €136.03 once morest €195.38, a difference that climbs to 44%.
Do you buy your fruits and vegetables in the markets? 7 out of 10 sellers are in violation!
What prospects?
The new taxes on litter and packaging have the sector fuming, Fevia and Comeos in the lead. Just like a VAT reform which, despite a 0% rate on fruit and vegetables, will only increase the average price of the basket with a 9% rate on other products (instead of 6% currently) . Admittedly, an increase in excise duty on drinks is expected by the end of the year in France, but it should not undermine the competitiveness of French supermarkets.
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