Michel-Édouard Leclerc announces price reductions to come on the shelves of his stores for 2025. Despite inflationary pressures, he intends to go “in combat mode” during negotiations with manufacturers. Its strategy to revitalize the…
While inflation has eroded the purchasing power of the French throughout the past year, a glimmer of hope is on the horizon. Michel-Édouard Leclerc, the charismatic boss of the E.Leclerc centers, made a resounding announcement this Sunday: he is targeting price reductions on the shelves of his stores for 2025. A breath of fresh air for consumers affected by the surge in labels.
2025, the year of lull in prices?
Invited on the LCI set, Michel-Édouard Leclerc was confident. According to him, “ the inflation rate will be flat » next year. Armed with this forecast, he intends to leave “ in combat mode » during the annual negotiations with the giants of the agri-food industry, who are preparing to open their talks.
Everyone comes with reasons to raise prices
Michel-Édouard Leclerc
But there is no question for the businessman to give in without flinching. On the contrary, he intends to obtain price reductions which he will hasten to pass on to the shelves of the 721 E.Leclerc centers in France. An offensive strategy that contrasts with the current trend, where mass retail brands are struggling to contain the rise in prices.
Focus on private labels
To make industrialists bend, Michel-Édouard Leclerc does not hesitate to brandish the weapon of private labels. These products labeled E.Leclerc, Eco+ or Marque Repère occupy a growing place on the shelves and shopping carts of customers looking for good deals. “ This allows us to have prices on average 30% lower than the big brands.“, argues the CEO.
A weighty argument in a context where household consumption is running out of steam, penalized by the loss of purchasing power. Carrefour understands this too. In an interview with Le Parisien this Sunday, its CEO Alexandre Bompard highlighted its own brands, which now account for 40% of the group's turnover. The hard discount battle rages on.
A “lack of professionalism” of politicians
If Michel-Édouard Leclerc is proactive in lowering prices, he hardly counts on the support of the public authorities. “ It is not the law that will set prices“, he decides, deploring a certain “ lack of professionalism » of the political class. An allusion to the delays of the government, which is struggling to appoint a new executive since its defeat in the legislative elections.
Even the most militant have disengaged from this dramaturgy
Michel-Édouard Leclerc
Consequence: the French, deprived of clear perspectives, prefer to save rather than consume. “ There is a lack of planning. For example, we don't know whether to buy an electric car because we don't know if there will be a resale value!“, illustrates the leader. A context of uncertainty that is not conducive to consumption.
A “Christmas of consolation” despite everything
Despite this gloomy climate, Michel-Édouard Leclerc wants to be reassuring for the end-of-year celebrations. The French should offer themselves “ a Christmas of consolation » et « consumption will not be that bad at the end of the year“, he predicts. A welcome improvement, even if it will not be enough to erase a generally difficult year 2024.
To boost sales, E.Leclerc also relies on targeted promotional operations, as evidenced by its recent prospectus “Inflation is not Christmas” which highlights reductions on a selection of festive products. It remains to be seen whether these efforts will bear fruit and restore confidence to scalded consumers.
To remember
- Michel-Édouard Leclerc aims for price reductions in his stores in 2025
- He forecasts a “flat” inflation rate and wants to negotiate firmly with manufacturers
- Private labels are a key lever to contain prices
- A “lack of professionalism” in policies penalizes consumption
- Leclerc is counting on “a Christmas of consolation” despite the difficult context
The bet is daring but Michel-Édouard Leclerc seems determined to win. If its forecasts are confirmed, 2025 could mark a turning point, with a gradual return of purchasing power in French households. A pleasing prospect, even if we will undoubtedly have to tighten our belts for a few more months before reaping the benefits.
