Michel-Edouard Leclerc forecasts a drop in inflation for the start of 2024, while annual commercial negotiations – from which he hopes to emerge a winner – on the prices of consumer products continue between manufacturers and distributors.
“We are going to look for pockets of price reduction, we are going to go and beat the crap out of inflation, and we are going to arrive with inflation towards the end of January, beginning of February, which will be at least half as much as last year” , promised the boss of the E.Leclerc centers on Tuesday morning, on France 2.
Some sectors expected to see faster price declines
Michel-Edouard Leclerc assures that the distributors, of which he is one of the spearheads, are allied to ask manufacturers “for deflation, for lower prices, because they have become too “sweet” during the year last “.
“It’s not over,” tempered the manager: “Many industrialists are still asking for increases of 6 to 8%. » To justify this increase, manufacturers would highlight the inflation of the “packaging price”, according to him. Some sectors are expected to see faster price declines. “There are commodity markets like cereals or coffee where it has fallen significantly.” “We are talking about the price of pasta, we are talking about the price of flour,” said Michel-Edouard Leclerc.
Inflation did not prevent the French from “consuming a lot during the holidays”
Annual commercial negotiations take place each year to set the conditions (purchase price, shelf space, promotional calendar, etc.) under which supermarkets will obtain supplies all year round from their agro-industrial suppliers.
These discussions usually conclude on March 1, but the government has decided to bring them forward by a few weeks in the hope of a quicker reflection in shelf prices of reductions in the cost of certain raw materials. “Everyone has reasons to pass their bill on to others, downstream,” laments Michel-Edouard Leclerc, pointing out the attitude of industrialists.
Inflation, still high in recent months, has not, however, prevented the French from “consuming a lot during the holidays,” he says, taking stock of the end of 2023. “The French economy has held its place from a consumption point of view. »