The JDD. Inflation in the euro zone falls below 2%. Can consumers expect to see certain food or everyday product prices drop?
Michel-Édouard Leclerc. INSEE and the Banque de France are now talking about disinflation. It is progressive, but very real. I think that inflation in France, on average, at the end of the year, will be well below 2%. This does not mean, however, that prices are falling in stores. Some ranges are lowering prices, but after three years of inflation, consumer frustration is perfectly understandable. In reality, in addition to constrained expenses, such as housing or transport, certain prices continue to rise, particularly on food and cleaning products, pushing the French to limit their purchases or to switch to cheaper products. At E.Leclerc, our buyers are determined to obtain significant reductions from multinational manufacturers.
The best of French production must be accessible to all
Negotiations with manufacturers will open in two months. What arguments will you develop to put pressure on the large groups whose abuses you have often denounced?
Large multinational brands must admit that they have suffered from inflation, losing market share to private labels. Logically, this should push brands such as Pampers, L’Oréal, Kellogg’s, or Carte Noire, to name just a few examples, to grant price reductions to distributors, who can then pass them on to consumers. At E.Leclerc, we refuse to allow this effort to rely on French farmers. French law provides for protection of their income. For this to be respected, the relationship between the farmer and the industrialist must be contractualized upstream of the negotiations.
The summer was complicated for farmers, with wheat harvests damaged by heavy rains. Could certain prices start to rise again?
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Prices of agricultural products can vary depending on the weather, geopolitical tensions or market demand. Thus, certain cereal producers have been particularly affected recently, with the risk of further increases. We do not contest the increases linked to agricultural expenses and costs or the price of raw materials. But let’s remember that distribution is not agriculture’s primary customer. The processing industry, wholesalers and the catering sector represent their main outlets. Each of these professions will have to compress their margins so as not to penalize consumers, while respecting the remuneration of farmers.
Your group was fined a record 38 million euros in August for circumventing the price negotiation framework with producers. Is this not proof of the excessive pressure from giants like E.Leclerc, particularly on farmers?
To say that we have been condemned is inaccurate. This is an administrative fine which was issued against a Belgian company which makes purchases from multinationals with our German partners. Legally and politically, we do not understand this approach. This all seems to be a communications operation against us. Objectively, I am not hiding anything. I don’t understand this story.
How can we generally reconcile ever lower prices for consumers and fair remuneration prices for producers to preserve our French production capacities?
Our goal is to make all products accessible to the consumer, whether it is an entry-level product or a more sophisticated one. We are neither hard-discounters nor sellers, we do not reduce our offers to low prices alone. On the contrary, we have one of the widest offers of French hypermarkets. Of course we try to negotiate well, but it is primarily because we work with low margins that we are the cheapest. The best of French production must be accessible to all.
The Prime Minister has just announced that the minimum wage will be increased by 2% from November. Is this a good measure?
Everything that goes in the direction of “social advancement” is, in my opinion, essential. Young French people need visibility on their future salary. I am in favor of salary progression over the years in the company, but to achieve this, the gap between gross and net salary must be reduced. For this I suggest transferring part of social contributions to another support than salary, in particular on products which compete with our jobs, such as products imported from low-wage countries, or which threaten them, such as robotics, digital services and of course artificial intelligence.
Michel Barnier promised a “participation of large companies which make significant profits”. E.Leclerc achieved record turnover in 2023, at 48 billion euros (+ 10%). So are you concerned?
France already practices very heavy taxation. For me, if we create new taxes, it must be part of an overall project, and not just to try to plug holes. Saying that we need to “tax more” makes no sense. I am against all tax increases if we do not know what they will be used for. Is it to finance new projects in education, health, decarbonization, culture? So why not. But is this necessary to tax more, or attract capital and mobilize savings? Between the incentive and the punitive, we must choose. After the inflation we have suffered, rather than taxing businesses, I would prefer that the new Minister of the Economy bring them together and negotiate price reductions for the benefit of consumers.
Tax increases must be part of an overall project
What do you think of the creation of a position of Secretary of State for Consumer Affairs?
This is a good thing, because consumers will need a strong voice within the Council of Ministers, and we must not forget that it is consumption that drives growth.
Do E.Leclerc hypermarkets have a future without Michel-Édouard, you who embody the brand so much?
I embody and live the brand, passionately. I feel responsible and obligated given the trust that consumers have historically placed in us. Today, I play the role of unifier, influencer and representative of these family businesses which, under the E.Leclerc brand, continue to invest and create jobs in their territory. It has been eight years since all executive positions were taken over by a new generation of entrepreneurs. I will always be by their side. But their performance and effectiveness are not only due to my popularity, but to the work of the teams on the ground who were able to make the stores attractive and the offers competitive. In reality, post-Michel-Édouard Leclerc, it’s with Michel-Édouard Leclerc… And sorry for my competitors, it could go on like this for a long time!
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