Battle of ads to attract the French. At Lidl, the campaign positions the brands on a thermometer, or compares the receipt with that of E.Leclerc with the slogan: “So who is really the cheapest? » His competitor answers him by placing the logos on the trunk of a palm tree: “Anyone wondering who is the cheapest must be living on a desert island. » In recent weeks, major food distribution brands have been doubling down on inventiveness to let consumers know that they offer the lowest prices, thus hoping to attract them to their supermarkets.
Because, on the shelves, the inflation cycle, which accelerated in spring 2022, after the outbreak of the war in Ukraine, is coming to an end. Prices of consumer products in supermarkets are stable over one year (−0.1% in May), according to data published by the Circana institute on Thursday May 23. And this for the first time since November 2021, even if prices remain 16% higher than two years ago (20% over three years). Not enough, however, to encourage the French to consume. On the volume side, sales of large stores fell by 2.4% over the first four months of the year (+ 0.4% in value), according to Circana.
The phenomenon worries supermarket brands which have invested massively since the end of 2023 in price reduction campaigns. In stores, turnover is declining under the mechanical effect of disinflation, and the quantities sold are not taking over. “We do not see any change in volumes in the first quarter”recognized Matthieu Malige, the financial director of Carrefour, while presenting, on April 24, the group’s economic data for the first quarter, i.e. a decline in turnover of 0.4% in France.
“Degraded purchasing power”
On the shelves of the 1,726 points of sale of Coopérative U – the new name of Système U – customers continue to make choices, laments its CEO, Dominique Schelcher. For products “traditional fees [boucherie, charcuterie, fromagerie, poissonnerie…]it’s always difficult », he explains. In the hygiene section, some customers continue to buy “detergent, but no fabric softener”. In the beauty products aisle, “on the most expensive items, such as skincare creams costing over 3 euros, we have deconsumption phenomena”. And private label brands still attract consumers. Sales volume of U products increased by 3.64% in 2023.
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