With a few hours to go before the end of the commercial negotiations, Lidl is putting pressure on its suppliers. Michel Biero, executive director of purchasing and marketing for the distributor in France, hinted that the brands (without mentioning them) could disappear from their shelves.
If national brands represent only 10% of the products sold by Lidl, some might be missing. The fault lies with the lack of transparency according to the distributor.
Like other distributors, Lidl requires proof of cost increases in its business negotiations with manufacturers. What some would refuse to provide.
Only 7 out of 10 contracts signed
Although the negotiations conclude this Tuesday night at midnight, many blockades persist. According to Ania, the industrial group, only 70% of the contracts were signed on Tuesday. A particularly low ratio a few hours from the end of the negotiation.
However, price increases were granted. Lidl, like System U, estimates that prices should increase another 10% after negotiations. But according to Michel Biero, these increases should be gradual.
To contain the increases, the distributor makes sure in any case to cut its margins. Although the head of state has invited the brands to do more, the head of Lidl believes that it is also up to the suppliers to make an effort.
Source: BFM TV
