HomeEconomyInflation: Retail heavyweights call for 'accountability' from MPs

Inflation: Retail heavyweights call for ‘accountability’ from MPs

Approved on Wednesday in committee before an examination on Monday in public session, the text aims, in particular, to rebalance trade relations between suppliers and supermarkets.

On the eve of the examination by the National Assembly of a bill that they accuse of favoring inflation, the French giants of large distribution called on Sunday the deputies to “responsibility” in a joint press release.

Led by the Renaissance deputy for Val-d’Oise Frédéric Descrozaille, the proposal “aims to prevent trade negotiation to the benefit of large industrialists and will fuel inflation in a spectacular and sustainable way”, attacks nine French champions of the sector in a common approach to describe as “unprecedented”.

“While many social issues are already mobilizing some of the citizens, Auchan, Carrefour, Grupo Casino (Casino, Monoprix, Franprix brands), Cora, E.Leclerc, Intermarché, Lidl, Netto, Système U are calling all deputies ( …) to measure the explosive effects of this bill”, write the posters.

“Inevitably harmful for SMEs”

Approved in committee on Wednesday before an examination on Monday in a public session, the text aims in particular to rebalance commercial relations between suppliers and supermarkets, which buy their products at prices fixed after tense negotiations.

In case of failure of these annual negotiations, the bill foresees that the price requested by the suppliers will be imposed, instead of the prices of the previous year that prevailed until now.

The provision makes big retailers jump, according to which the text, if adopted as it is, could further increase the price of pasta, steaks or yoghurts sold to the French, who already face more than 5% inflation in 2022.

“This proposal, openly supported by the largest representatives of agribusiness interests (Ilec), would allow large suppliers to unilaterally impose their prices on distributors, nullifying the very notion of +commercial negotiation+”, the distributors are outraged.

The text “will inevitably be detrimental to French SMEs (small and medium-sized enterprises, editor’s note)”, they add.

Requested on Monday by AFP, the office of the delegate minister of Commerce, Olivia Grégoire, acknowledged that the bill presented “an inflationary risk.”

“We are working with the deputy and the other interested cabinets to find a compromise acceptable to all,” added the same source.

Author: CO with AFP
Source: BFM TV

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