Michel-Édouard Leclerc, boss of the eponymous retail brand, was the guest of the morning of CNews yesterday, Monday, November 21. During this interview, the entrepreneur warned of an inflationary “tsunami” “which will be very expensive for the French”.
Laurence Ferrari’s guest expressed his regret over a “apathy, trivialization” current inflation, “a tax” than the French, “decision-makers and entrepreneurs, do not see it happening”, he explains. The boss of Leclerc listed some causes of this inflation, such as the post-Covid recovery or the war in Ukraine, but not only.
He also mentioned the need to produce, in France, certain products and above all, the high margins currently enjoyed by manufacturers. “If we don’t mobilize where the margins are made and where the competition is not, it will be very expensive for the French with a super wall of inflation in 2023”he said.
Edouard Leclerc gave some figures related to inflation during this month of November, based on store prices and INSEE statistics. “On food, we are at 14%, on fresh products, we are at 18%”, he recalls. In addition to these increases “substantial”, “we are told for 2023 increases that all exceed 10%: an increase of 17% for canned fruits and vegetables, 10% on coffee, 41% on animal products, 41%, 10% on starchy foods”says Mr. Leclerc.
The “alliance” of public authorities with industrial lobbies
Such is the “tsunami” inflationary against which the boss of this brand warns. “The question is: will it last or not? It is clear that yes. Jacques Attali speaks of a decennial inflation, let’s say speculative. French production will be more expensive, because it will seek to decarbonize. Food also seeks to be better in terms of health. We must rehabilitate competition policies and today”, he believes.
During this morning, he noted a “ambiguity” from the public authorities. “We hear Bruno Le Maire and Elisabeth Borne say that we must remain at 3-4% inflation to preserve the budget with France’s listing obligations”, he recalls. Nevertheless, “next to this, ministers are telling manufacturers: ‘Raise your prices, rather than receiving aid'”. Michel-Edouard Leclerc thus evokes a “alliance between the public authorities, parliamentarians and industrial lobbies, which wants to win the bet and does not accept being placed in competition”.
The contractor claims not to keep “anti-industrial discourse”. He recalls, in his answers, that inflation “happens in our store” thereby, “It’s up to us to negotiate. We want the public authorities to be on our side, with us, to tell the manufacturers, only take the necessary increases”.
He also reveals a bill, which would aim, according to him, to extend the protection of agricultural activity to industrial activity. “In other words, the industrial food multinationals gathered under an association called ILEC, convinced the deputies that it was necessary to intervene and limit promotions on their products and force distributors to buy more expensive in a systematic way. , as we did with the farmer”explains Mr. Leclerc, ironically comparing “a farmer at Nestlé”.
The promotion to encourage the purchase
Asked how the French could cope with inflation, the boss of the large-scale distribution cooperative insisted on the importance of promotions and keeping prices affordable.
“The money put into circulation by the public authorities on the French economy during the Covid crisis has not been spent. Savings unequally distributed in French society on which we can count to boost consumption. This savings is only released if the prices are attractive, with promotions…”, affirms Edouard Leclerc, who adds that “life in promotion is part of everyday life”.
Otherwise, continues the entrepreneur, “households arbitrate for a very long time, come to the store with 35-40 euros. We go from national brands to distributor brands or first price brands, we make mixed purchases”.