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It is not uncommon for the French to think about the purchasing power they had in 2019, before the crisis. But inflation has been there. By galloping, it is increasing prices to historic levels. Today, the Leclerc brand wants to continue to defend consumers.
As discussions between food manufacturers and distributors begin after a year marked by low consumption, Michel-Édouard Leclerc, president of the brand of the same name, makes his determination known. During his speech on LCI this Sunday, December 22, he announced that he wanted to obtain price reductions despite an uncertain economic context.
Leclerc's aim is to contain price rises
Michel-Édouard Leclerc does not beat around the bush and quickly indicates, that manufacturers are demanding new increases in negotiations with distributors. And this, despite an inflation rate which will be stable in 2025, according to the president of the Leclerc group.
So he plans to negotiate firmly. He even admits to going into combat mode for his negotiations which promise to be tough. They also call for the understanding of manufacturers. He asks them to spread out cost increases to limit the impact on consumers.
To have
Leclerc urgently recalls this product widely consumed by the French due to poisoning, this concerns Whiting fillets
Note the increasingly important place that private label brands (MDD) are taking in negotiations. At Leclerc or even at Carrefour, these brands are gaining popularity thanks to their quality and very competitive prices.
By offering their own brands, retailers can influence the prices of national brand products. This encourages manufacturers to adjust their prices to remain competitive. On average, these private label brands allow save 30% for consumers.
A distrust of political action
Michel-Édouard Leclerc no longer relies on public policies to relieve the wallets of the French. He does not hesitate to criticize the lack of planning and professionalism of political decision-makers. It must be said that French political life is going through a period of historical instability. So, the owner of the Leclerc stores has no idea, it is not the law that will set prices.
According to him, this instability fuels a climate of uncertainty. This uncertainty would push the French to save more rather than consume. Many stores feel this, not only at the Leclerc brand. Caution is called for, even though inflation is much less rampant than a few months ago.
An end of the year under the sign of “consolation”
Despite this difficult context, Michel-Édouard Leclerc anticipates a surge in consumption for the end-of-year holidays. “ The French will treat themselves to a Christmas of consolation “, he declares. For him, consumption will not be bad in December. Every year, It’s a month full of spending. Consumers like to treat themselves and please. They forget, for a day, the troubles and worries of everyday life.
To have
Leclerc urgently recalls this flagship poultry for Christmas because of salmonella, do not consume it
However, the boss of the Leclerc stores could see this forecast not come true. Indeed, a study by CSA Research for Cofidis, in November, announced a decreasing Christmas budget, 52 euros lower than that of 2023.
The coming weeks will be decisive for distributors, manufacturers and consumers. The stakes are very high. Indeed, Leclerc and others want to preserve purchasing power while responding to economic and environmental challenges.
The use of private labels could well become one of the key solutions to meet the expectations of French households.
