Dominique Schelcher : System U did well during the health crisis. Our economic resilience owes a lot to the fact that we are in food distribution, which is therefore essential. Our essential role has been a motivating factor for our teams. On the other hand, I am extremely worried about the crisis that is starting: that of the price of energy.
You address inflation, precisely, for consumers, what have you put in place to protect purchasing power?
We develop a level of promotions rarely reached here. We have strengthened our loyalty program. Our flagship measure, the one we have been practicing since the start of the Covid crisis, is always 4 fruits and vegetables at cost price. Attention, this does not mean that we buy badly from the producer. We buy at the right price, within the framework of contracts, we just don’t take a margin. This represents 15 million euros in additional annual purchasing power for customers.
Fixed prices? More symbolic and communication actions than anything else
You have not chosen to communicate on hundreds of products at blocked prices, such as Leclerc, Casino, Carrefour…?
We prefer to choose to highlight our fruits and vegetables at cost price. Blocking price lists in times of inflation does not make sense. Anyway, with hindsight we see that the blocked price lists are more symbolic and communication actions than anything else.
Have consumption habits changed over the past few months in your stores?
The amount of the average basket has not changed downwards, due to price increases, but there are arbitrages. We buy fewer fresh products, cut cheese, fish and butchery are affected. The question for us this fall is: how far will customers’ food choices go with the surge in inflation?
What about the shortages noted in certain departments in recent months?
I would not speak of a shortage, as was the case for mustard and sunflower oil sometimes, but of a phenomenon of occasional rupture of the presence of products on the shelves for 3, 4 days or even a week. Three reasons explain this: There is a lack of truck drivers in France, logistics are suffering. There are human resources problems among producers who are slowing down their production, harvests… Finally, increases in the price of raw materials and especially energy sometimes lead to pure and simple plant stoppages.
The absence of a tariff shield for companies is catastrophic
You recently predicted a massive economic crash in France, can you specify?
I wanted to alert the public authorities, to sound the alarm about energy prices. For the past few days I have been receiving a lot of testimonials from companies that without help will not survive exploding bills. The absence of a tariff shield for companies is catastrophic. There is great danger because in the French or European speeches I have heard nothing that can solve the insoluble economic equation for many companies. The need for aid is massive, in food in particular. Without state aid, the food chain could be threatened… I am worried about SMEs and those who supply us
Could the energy crisis upset the economic model of Système U?
Our bills are likely to double, our business model is disrupted, especially that of the stores most recently purchased and therefore more indebted. But we are a cooperative, we will show solidarity between stores. I am more worried about SMEs and those who supply us
We know that price negotiations are often difficult between suppliers and distributors. Have you implemented specific measures to support these SMEs?
We have put in place a position of discernment with regard to SMEs. For those who request it, we pay their bills in cash. It is an effort to more than 12 million euros in cash advanced to SMEs. We have implemented a moratorium on penalties for SMEs (Editor’s note. Logistics penalties, delivery delays).
And vis-à-vis large companies?
Our discussions with large companies can be heated because we defend the purchasing power of our customers and we need to be certain that the increases we accept are justified and legitimate. We do our job as a trader…