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The Leclerc brand has decided to strike a blow by setting the price of its baguette at 0.29 euros. At a time when wheat prices are soaring, bakers denounce unfair competition.
The baguette remains the favorite bread of the French. A real loss leader, in the spotlight since Wednesday January 12. Because Michel-Edouard Leclerc has blocked the price of his baguette at 29 euros, for at least four months. In a store near Lyon (Rhone) 1,000 are sold per day, or 30% of sales in the bakery department. “We are still making a little margin (…) It remains a loss leader, we have to be efficient on the selling price”, assures Vincent Denis, director of the hypermarket.
Even as the cost of grain and production costs increase, how is such a price possible? According to INSEE, the average price of a baguette is 0.90 euros. It takes 15% flour, between 30 and 40% wages, 10 to 15% fixed costs and 30 to 45% margin. According to observers, large retailers manage to drive prices down by using flour of lower quality than that purchased by artisans.