Frédéric Descrozaille, the Renaissance deputy for Val-de-Marne, is relieved. While the bill on immigration, hit by the pension crisis, is pushed back, its bill comforting manufacturers in their tense commercial relations with distributors was definitively voted on Tuesday, March 21 in the Senate, then on Wednesday in the Assembly (unanimously), after two months of arm wrestling and many twists and turns.
The last reversal of the situation dates from Monday. In its latest version, the text provided for limiting “shock” promotions on hygiene and beauty products to 34% in value (there is currently no limit), as is done in the eating. But at the start of the week, the Minister of the Economy, Bruno Le Maire, proposed to go further.
Entry into force postponed to 2024
Believing “a bit paradoxical that we wanted the lowest prices for our compatriots, and at the same time limit promotions for detergent and hygiene products to 34%”, the Bercy tenant declared himself “in favor of ‘we authorize Michel-Edouard Leclerc and all the distributors to make promotions (…) up to 50%”. On Wednesday, however, no government amendment had been tabled to this effect.
The only last-minute concession: the entry into force of this provision has been postponed to March 1, 2024. “This limitation of promotions will weigh on household budgets, because these products (detergents, deodorants, shampoos, dishwasher tablets, etc.) are expensive”, criticizes the boss of the E. Leclerc strategic committee, Michel-Édouard Leclerc, who recalls that if the average rate of promotion in this sector is 25%, it reaches 47% for detergents and nappies and 44% for products used in washing machines. “However, we will not be able to compensate for the limitation to 34% in value by multiplying the promotions, since they are also limited to 25% in volume”, he denounces.
Several other articles of this bill – which define what happens in the event of failure of the annual negotiations on March 1, limit the logistics penalties or extend the obligation for the distributors to apply 10% of margin on the articles that they buy – are in line with the demands of major manufacturers (Procter & Gamble, Mars, Unilever, etc.)