System U is ready to buy some more expensive products, to account for soaring commodity prices.
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In one year, the price of wheat has increased by 38%. The surge in raw materials is destabilizing food prices. Eco guest of franceinfo, Dominique Schelcher, president of Système U, says he is ready to buy certain more expensive food products, even if it means “reduce its margins “.
Food manufacturers want to sell their more expensive products to supermarkets, to compensate for the increases they themselves are facing. Tariff negotiations have started: “We will discuss it with our suppliers “, explains the leader. “We are going to ask manufacturers to explain to us the reasons for their increase needs. From the moment this will be explained, justified, and particularly from the moment there will be a repercussion at the level of the farmer (…) we will have no difficulty in validating the increase. “
Food suppliers are demanding increases of 5% to 10%. Will System U grant such large increases? “We discuss on a case-by-case basis “, replies the boss of U stores. The manager continues: “Take the figures (…) We have 2.6% inflation in France in October. We can see the trend. We will not stay at 2.6%. It will go up a bit. “
We will find the right balance. This year is exceptional.
Dominique Schelcher, President of Système Uon franceinfo
But will consumers pay more for the more expensive products? “We will play our role of shock absorber “, replies the boss of System U. “For example, in fruits and vegetables, which have particularly increased, in particular for climatic reasons, we have continued to reduce our margins, even to sell a certain number of fruits and vegetables at cost prices, to continue to make them accessible. to consumers. This is the type of effort that we will continue to make. “