The Réunion Price Observatory puts pressure on mass distribution
On the occasion of its plenary assembly, the Observatory of Prices, Margins and Revenues of Reunion Island issued a blunt note to ask for more transparency from major retail brands.
If those responsible for the Observatory of Prices, Margins and Income are pleased to have been able to obtain the first data from large-scale distribution in Reunion on the formation of prices for 21 products, they deplore insufficient transparency and put pressure on the signs so that they say more.
Meeting in plenary assembly this Friday, October 4 at the headquarters of the Chamber of Commerce in Saint-Denis, the Observatory notably took stock of the investigations of its working group dedicated to the formation of prices, which must present its final report at the end of the year. He also distributed a note summarizing five proposals “on improving transparency in large-scale, predominantly food distribution” which reflects a certain dissatisfaction, arising from “the difficulty in collecting clear, reliable and precise information”.
The Observatory is calling, to begin with, for the establishment of a truly dissuasive fine to force large local companies to submit their annual accounts, as required by law. He also requests the application of a 2017 decree which requires mass retail brands to transmit their cash register data to INSEE, which would greatly facilitate the calculation of the household consumer price index.
Rear margins still in the hot seat
The Observatory also requests a right of communication of data collected by State services but not disseminated to preserve business secrecy, as well as the strengthening of the means of control of the Competition division of the Directorate of Economy, employment, work and solidarity (DEETS). He finally throws a wrench in the pond by proposing to replace rear margins, additional income obtained by distributors from their suppliers, with invoice discounts. The rear margins, negotiated with the greatest confidentiality and symbol of the superior position of the brands, constitute a significant part of the latter’s final profit.
Jérôme Filippini, prefect of Reunion Island, attended this plenary assembly, proof of the current vigilance of the State on the subjects of “high cost of living”, which regularly inflame overseas territories and these days Martinique. Upon his exit, he praised the work on transparency, “which is not done elsewhere”, carried out by the OPMR, while insisting on the need to “not stigmatize anyone”. Bertrand Huby and Jocelyn Cavillot, president and vice-president of the Observatory, also wanted to soften the harshness of the criticism expressed in writing by emphasizing the spirit of collaboration of the brands (only Intermark could not be heard), even if they did not “go all the way” with the transparency exercise.
