“A multinational that asks us for a 30% increase without any justification, I stop working with it.” While distributors have until March 1 to negotiate with manufacturers to define the prices of the products to buy, Michel Biero, Lidl France’s executive director of purchasing and marketing, sends a message to multinationals.
On the set of BFMTV, he accuses the big brands of not “being transparent to the vast majority” in their requests.
“An increase of 30%, why not. Inflation is rampant, why not”, continues the executive director of purchasing and marketing of Lidl France. “But you have to explain a minimum to us,” he pleads.
There is still a month left for all brands to negotiate the prices of more than a thousand consumer products. And due to the inflation that affects the French, the prices of many products will probably increase.
An impact on the shelves after March 1
Hence the current “balance of power” between the big brands (Lidl, Leclerc, Super U, etc.) and the big brands. “Even with French SMEs”, specifies Michel Biero. “But we discussed. They show us transparency and we sign.”
Products from very big brands will “most likely” disappear from Lidl’s shelves, Michel Biero announces, without giving a precise name. As for the average increase in sales prices on the shelves, it will be “at least 10%”, as a result of the increase in the purchase prices of the brands.
“There will be increases in function, in May-June-July, and then I dare to hope that it will be calmer,” explained Michel-Edouard Leclerc a few days ago on the BFMTV set.
Source: BFM TV
