On the eve of the examination by the National Assembly of a bill which they accuse of favoring inflation, the French giants of mass distribution called on the deputies on Sunday to ” responsibility “in a joint press release.
Supported by the Renaissance deputy for Val-d’Oise Frédéric Descrozaille, the proposal “aims to prevent trade negotiations for the benefit of very large industrialists and will dramatically and sustainably fuel inflation”attack nine French champions in the sector in a common approach that they describe as“unpublished”.
“Explosive Effects”
“While many social issues are already mobilizing some citizens, Auchan, Carrefour, Casino group (Casino, Monoprix, Franprix brands), Cora, E.Leclerc, Intermarché, Lidl, Netto, Système U are calling on all deputies (…) to measure the explosive effects of this bill”write the brands.
Adopted on Wednesday in committee before an examination Monday in public session, the text aims in particular to rebalance commercial relations between suppliers and supermarkets, who buy their products at prices fixed following tense negotiations. In the event of failure of these annual negotiations, the bill provides that the price requested by the suppliers is imposed, instead of the prices of the previous year which prevailed until now.
The provision makes large retailers jump, according to whom the text, if adopted as it stands, might further increase the price of pasta, steaks or yogurts sold to the French, already faced with more than 5% of inflation in 2022.
“A compromise acceptable to all”
“This proposal, openly supported by the largest representatives of agro-industry interests (Ilec), would allow large suppliers to unilaterally impose their prices on distributors, nullifying the very notion of “trade negotiations””, are indignant distributors. The text “will inevitably be detrimental to SMEs (small and medium-sized enterprises, editor’s note) French »they add.
Solicited on Monday by AFP, the office of the Minister Delegate for Trade Olivia Grégoire had recognized that the bill presented “an inflationary risk”. “We are working with the deputy and the other cabinets concerned to find a compromise acceptable to all”we added from the same source.
