Food regulations: products prices to go drastically up

One measure of the food regulations will come into force on 1st February: there will be an increase of +10% on the threshold of sales loss on food products, which will translate into an increase of the reference prices for the big brands. Indeed, so far 20% of distributors’ turnover was made with less than 10% margin. With this new measure, the price increase at Carrefour will be in average of +€35 cents per product. “There were around 1 000 products that we were selling with very narrow margins, between 0 and 10%” says Elodie Perthuisot, Marketing and clients’ director at Carrefour. At Intermarché, 5% of the products on offer will show an increase in price, which will amount to 0.8% inflation on the basket in 2019. Leclerc should be the most impacted brand by this measure. “About 3000 products should have increased on 1st February, but we have managed to contain the increase. 1 000 products will increase by 3%” says Michel-Edouard Leclerc, president of the E.Leclerc centres.
Angélique Vallez-d'Erceville, 31st January 2019
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