The CEO of Carrefour Alexandre Bompard plans to ask the Minister of the Economy Bruno Le Maire on Wednesday for “a moratorium” on the application of the Descrozaille law, which governs the promotions of certain products and must come into force in March 2024, a- he announced Tuesday on France Info.
Bruno Le Maire and the Minister Delegate for Trade Olivia Grgoire summoned representatives of large retailers on Wednesday morning, and those of their agro-industry suppliers on Thursday, while prices remain very high on the shelves of supermarkets.
On France Info, Alexandre Bompard, who officially became president of the employers’ federation of large retailers (FCD) on Monday, explained that he planned to ask the minister for a one-year moratorium on the application of the Descrozaille law voted last March and which led (the distributors) to have to limit promotions in the drugstore, for care and hygiene products 34%.
Today I can sell laundry 50 or 60% off, he explained. But from the application of this bad law as he describes it, Carrefour like the other distributors will be obliged to limit itself to 34%.
Alexandre Bompard lamented that consumers, hit by inflation, are depriving themselves of essential products such as feminine protection, nappies, toothpaste, which are experiencing double-digit sales declines.
The provision only benefits three major global multinationals, said the CEO, who cited Procter & Gamble, Henkel and Unilever, which share most of the market.
The business leader has also taken up the pen to try to convince the presidents of parliamentary groups of the need for such a moratorium.
In a letter revealed by the specialist media LSA and Les Echos and which AFP was able to consult on Tuesday, he pleads in particular that postponing the entry into force of this provision for a year, by setting a date for reviewing the situation, would constitute a targeted, useful effort with a direct impact on the purchasing power of the French people.
A few months after the government’s promise of a visible drop in food prices at the start of the school year, the bill remains painful for consumers. Food prices rose 12.7% in July year on year.
The government plans to ask for the promotional operations to be extended to a larger number of products, and hopes to convince more manufacturers to commit to lower prices. Otherwise, we are entering the budget period, expected at the end of September, we have instruments at our disposal so that everyone plays the game, warned Bruno Le Maire on Monday.