15.8% in one year. This is the increase observed by INSEE, between March 2022 and March 2023, in food prices. The explanation lies in one word: inflation. But as in any crisis, some players are doing well, starting with mass distribution. The sector, shaken by the drop in attendance during the Covid-19 crisis, has multiplied initiatives for purchasing power, in particular with the anti-inflation quarter. The operation, on the initiative of the government, makes it possible to freeze the prices on certain food products. A look back at this renewed activity with Franck Lehuédé, consumer specialist at Crédoc, the research center for the study and observation of living conditions.
With the Covid, consumers shunned supermarkets. How to explain their return to grace?
By the prices that are practiced there in this context of economic crisis. In addition to blocking the prices of certain products with the anti-inflation quarter, there are regular promotional operations and discounts offered by the loyalty card system. The hyper and super were also able to find discount prices and they have the advantage of having wide ranges in terms of prices. You can find national brand products, which are generally more expensive, and first-price products. This will attract more consumers, because they will be able to choose products according to their means. They were able to reconnect with a part of the clientele that frequented them less regularly.
What strategies are in place to lower prices?
Large retailers reduce internal management costs within the company as much as possible so that the difference between the price bought and the price sold is the lowest. These strategies are also found in loss leaders, notably with fuel. These gas stations are often the cheapest in the area.
Is this increase in visits to hypermarkets and supermarkets to the detriment of local shops?
After very good years during the pandemic, the frequentation of local shops fell a little in 2022. At the time of the pandemic, some consumers rediscovered these shops around the corner for fear of going to hypermarkets. But they now have a limited budget and they go there less often. Over the year 2023, however, attendance has remained stable and, above all, it is still above the level before the health crisis.
Consumers are moving more and more towards discount. How do you explain this change?
This change is explained by purchasing power. Consumers wondered how to react to such inflation. We had not experienced such a shock since the 70s. The price positioning of independent shops is higher than that of hyper and super. This is why the hard-discount model, food outlets like Action and anti-waste stores are very popular with consumers.
Biocoop, placed in receivership since October 26, has already closed 4 of these stores. Do you think this is the end of organic supermarkets?
Specialized food shops are not doing badly, but we are on a specific organic dimension. This sector had the wind in its sails until 2018. It is not just a question of price. From 2019, consumers weighed the environmental promise, the health benefits of these foods. But competition from local products, short circuit or regionally manufactured, which we have seen spreading in hyper and superstores, has led to a drop in consumption in organic stores.
Will the dominant position of hypermarkets last?
As long as there is inflation, I think there will always be a primacy given to hyper, super and hard-discount. But we cannot know if another economic or health crisis will upset this model.