Rising prices: System U could withdraw certain brands from the shelves

by time news

2023-04-19 15:14:19

Soon less choice for more purchasing power? The CEO of System U thinks about it. Dominique Schelcher said Tuesday evening that the group’s stores could make “more radical choices” in the coming weeks with brands that do not agree to renegotiate their prices with the distributor. “The time is to make more radical choices, including in this consumption,” he defended on the set of BFMTV.

Energy prices, as well as the cost of raw materials, have again become similar to the tariffs practiced before the war in Ukraine. An element which, for Dominique Schelcher, justifies returning to the negotiating table to reassess prices. “The prices we are currently applying are the result of negotiations between December and February. It works when there is no inflation. Now, it is no longer tenable, we must reopen negotiations, ”he argued on BFMTV.

The Minister of the Economy, Bruno Le Maire, had already written a letter to the manufacturers on April 7 to ask them to open trade negotiations again and that “the sale prices be revised downwards each time it is objectively justified”.

In Germany, a choice already applied

The CEO of the Système U group mentioned the example of many brands across the Rhine: “My German colleagues have radically removed entire brands from their shelves to lead a fight for the consumer. If necessary, we will do it, ”assumed Dominique Schelcher.

The distribution group had already banged on the table at the end of March, gradually withdrawing PepsiCo products (Pepsi, Lipton, Lay’s, etc.) from its shelves, for lack of a trade agreement. “We couldn’t come to an agreement. The price increase requested by Pepsi was more than 20%, we did not understand it, ”insisted the CEO of System U.


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