Imagine a map of France: the lowest prices are in the West. In Brittany and Pays de la Loire, these departments are in the green. In these regions, food prices are approximately 5% below the national average. Conversely, the areas where prices are the highest, in the red, are Paris and the Côte d’Azur, with rates 15% higher than the average. For a family, this represents a difference of around 1,200 euros per year on their consumption.
But why such price differences? Among the objective reasons, the West concentrates a large number of brands that are aggressive on prices : Leclerc, Super U and Intermarché are very present there, which pushes prices down. Then, the cost of the products on the shelves is influenced by the merchant’s charges, and in particular the price of rent. If rents are higher, as in Nice for example, this has a direct impact on prices. However, in the West, rents are cheaper. Finally, traders also adjust their prices according to local purchasing power. In wealthier areas, the temptation to maintain higher prices is stronger, which retailers modestly call “l’adaptation locale“. I would rather talk aboutopportunism.
Does the same brand charge different prices depending on the region?
Absolutely. However, there are two exceptions: Lidl and Aldi. These brands charge identical prices throughout France, regardless of the region.
Lidl has made this policy a communication argument, agreeing to reduce margins in some stores and increase them in others. But this strategy remains the exception in the mass distribution landscape.
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