Michel-Édouard Leclerc “attempted”, but it is not a “winning” technique

Faced with the price increase demanded by the Pepsico group, Carrefour has decided to no longer sell its products from Thursday. For his part, Michel-Édouard Leclerc evokes requests for an increase of up to “23% on oil” or “18% on fruit juices”.

Published


Update


Reading time: 2 min

Michel Édouard-Leclerc, CEO of the Leclerc group, November 6, 2023 on franceinfo.  (FRANCE INFO / RADIO FRANCE)

Carrefour suspends the sale of Pepsico group brands to protest against the price increase demanded by the manufacturer. “We are tempted” to do the same thing but “it’s never a winning game”reacts on franceinfo Thursday January 4, Michel-Edouard Leclerc, president of the strategic committee of the E.Leclerc centers. “Consumers don’t want to pay a lot, but if they don’t have their product [en rayon] they go to competitors”he regrets.

If he admits to having “Already” taken this type of eviction “once or twice a year”Michel-Édouard Leclerc prefers to use another argument “less brutal”. The representative of the leader in mass distribution, E. Leclerc, explains that he “an advantage compared to Carrefour”namely that his group “is the only distributor to have had an increase in volume”.

Still, Michel-Édouard Leclerc means well “put on boxing gloves” facing manufacturers within the framework of annual commercial negotiations. “It’ll be hot”, he warns. He accuses multinationals of asking “increases in [prix] 6 to 10% on average”what he judges “incongruous”. The president of the strategic committee of the centers E. Leclerc mentions, for example, requests for an increase in “23% on oil”, “11% on chocolate bars, 10% on hot sauces, 18% on fruit juices, 8% for champagne”. Faced with this situation, Michel-Édouard Leclerc promises to go “looking for deflation”. “We have until the end of the month to bring all this back to reasonable”namely no more than “2.5%” increase, he maintains.

The president of the strategic committee of the centers E. Leclerc also explains that certain products will see their prices drop on its shelves. According to him, these are products “which do not depend on French laws or even the French production system”. Michel-Édouard Leclerc cites in particular the products manufactured in “the Indo-Pacific region” Or “prices and charters are falling”. He therefore estimates that he will observe price reductions next summer for “toys, household linen, textiles [ou encore] multimedia”.


source site-14

Latest