“We’re going to look for pockets of price reduction, we’re going to beat the crap out of inflation, and we’re going to arrive with inflation, I think – at the end of January, beginning of February – which will be at least half as low as the last year”promised the boss of the E.Leclerc centers on Tuesday morning, on France 2.
Michel-Edouard Leclerc ensures that distributors, of which he is one of the spearheads, are allied to ask manufacturers “deflation, falling prices, because they got too sweet last year”.
“It’s not played”tempered the leader: “Many manufacturers are still asking for increases of 6 to 8%.” To justify this increase, manufacturers would highlight the inflation of the “packaging price”according to him.
Some sectors are expected to see faster price declines. “There are commodity markets like cereals or coffee where it has fallen significantly.” “We talk regarding the price of pasta, we talk regarding the price of flour”specified Michel-Edouard Leclerc.
Annual commercial negotiations take place each year to set the conditions (purchase price, shelf space, promotional calendar, etc.) under which supermarkets will obtain supplies all year round from their agro-industrial suppliers.
These discussions usually conclude on March 1, but the government has decided to bring them forward by a few weeks in the hope of a quicker reflection in shelf prices of reductions in the cost of certain raw materials.
“Everyone has reasons to pass their bill on to someone else, downstream”deplores Mr. Leclerc, pointing out the attitude of industrialists.
Inflation, still high in recent months, has not, however, prevented the French from “consume a lot during the holidays”he is satisfied, taking stock of the end of 2023. “The French economy has held its place from a consumption point of view.”
