The effort seems colossal given the economic context and the sector of activity. In an article in Les Echos du jour, Picard’s boss indicates that the company is mobilizing its own profits to support inflation while limiting its impact on prices charged on the shelves to 10% versus 17.5% for the frozen range. of your competitors. “Suppliers are suffering from the increase in raw materials, energy and wages, explains Cathy Collart Geiger. Some ask us for increases of 30%, some no longer deliver to us in case of refusal. Our own costs increase. We pass on any increase, selling prices will go beyond what customers can accept.”
Significant Sobriety Measures
The frozen food store chain is obviously more exposed to the energy crisis compared to its competitors in large distribution. The CEO of the group plans to triple the prices of its electricity contract, which will be renegotiated in the coming weeks. An increase that will boost the energy item on the podium of the main expenses of the network of 1,000 stores, only behind income and personnel expenses, whose annual increase is greater than 5%.
Picard has been making efforts to reduce energy consumption for a long time and has reduced its energy bill by 10% in the last decade, a performance that it wants to repeat in 2026. In addition to modernizing its facilities, it is committed to simple gestures such as the general closure of equipment refrigerators, the installation of voltage regulators or even an accentuation of the drop in temperature during the night. But all these efforts do not prevent the company from seeking state aid and advocating for electricity rates disconnected from those of gas.
Temporary blocks in investments and contracts
But this relative preservation of prices necessarily implies sacrifices, particularly in investments, although the plan for 40 new points of sale is maintained, but also in hiring, part of which has been postponed. On the other hand, nothing to fear for the end-of-year celebrations because purchases of goods are brought forward by a year, including raw foie gras which will continue to be available despite supply difficulties caused by bird flu.
Source: BFM TV
