Despite strong opposition from distributors, Parliament finally approved the Descrozaille law last week, which strengthens producers and manufacturers in their commercial relations with Leclerc, Carrefour and others.
The text, led by the Renaissance deputy Frédéric Descrozaille, is strongly criticized for the great distribution that accuses it, in particular, of limiting its possibilities to propose strong promotions. In particular, those on non-food products that will have a ceiling of 34% as of March 1, 2024.
A hard blow for distributors knowing that the ceiling on drugstore-perfumery-hygiene (DPH) product promotions should mean a deficit of 232 million euros, according to a study by panelist Nielsen. A turnover loss divided between the hygiene and beauty departments (105 million euros of lost profit), cleaning products (125 million euros) and paper (2 million euros).
The sale of laundry detergents would be the most penalized
In the health-beauty section, it is the family of bath+shower products that would generate the largest deficit (30.6 million euros), ahead of baby changing products (-20.3 million euros) and shampoo (-18.3 million). . In the cleaning products category, the ceiling on promotions would mainly penalize sales of detergent (-81.3 million euros), dishwasher products (-15.6 million) and fabric softeners (-11,8000000).
Finally, on the paper side, this new law would mainly affect sales of paper towels (-2.4 million euros), handkerchiefs (-0.3 million) and wipes without make-up remover (-0.1 million).
As a reminder, the lost turnover in food after the implementation of the Egalim 1 law was 836 million euros in 2019, according to Nielsen.
Source: BFM TV
