2023-08-29 11:23:00
Led by Renaissance deputy Frédéric Descrozaille, the text was decried by distributors because of the 34% cap on “shock” promotions.
By PM with AFP A text of law governs promotions, with a cap of 34%. © JEAN-FRANCOIS FORT / Hans Lucas / Hans Lucas via AFP Published on 08/29/2023 at 11:23 a.m.
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On the eve of a meeting between the Minister of the Economy and distributors on inflation, the CEO of Carrefour said on Tuesday that he would ask Bruno Le Maire “a moratorium” on the application of the Descrozaille law, which regulates the promotions of certain products and should come into force in March 2024. According to Alexandre Bompard, this law “leads (distributors) to having to limit promotions in drugstores, for care and hygiene products to 34%” , he developed on Franceinfo.
“Today, I can sell laundry at 50 or 60% discount,” he explained. But from the application of this “bad law” as he describes it, Carrefour like the other distributors will be “forced to limit themselves to 34%”. Alexandre Bompard lamented that consumers, hit by inflation, are depriving themselves of “essential” products such as “feminine protection, diapers, toothpaste”, which show “double-digit” sales declines. The Descrozaille law “benefits only three major global multinationals,” said the CEO, who cited Procter & Gamble, Henkel and Unilever.
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Led by Renaissance deputy Frédéric Descrozaille, the text was decried by distributors, one of the main points of tension relating to the 34% cap on “shock” promotions on non-food products, deemed “irresponsible and inflationary” by the federation. employers of large retailers, the FCD. Deputies and senators had however maintained the cap, but agreed to postpone the entry into force to March 1, 2024.
Meeting at Bercy
Distributors and industrialists are again invited to Bercy this week, Wednesday morning for distributors, Thursday for industrialists, “to ask them to extend their operations, which have worked”, said Bruno Le Maire Monday on France Inter. Manufacturers explained before the summer that they had committed to an “effort”, generally in the form of temporary promotions, on the price of “about 1,000 products” from major brands.
Before the manufacturers, the supermarkets had for their part committed in mid-March, within the framework of a non-binding commercial operation called “anti-inflation quarter” – since extended -, to sell a selection of products left to their discretion, at the “lowest possible price”.
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