There is no respite on the inflation front for food products with prices rising on average more than 16% over a year and 1.8% over a month in March. Almost unheard of.
The situation is not new, but it is getting worse. Thus, according to Dominique Schelcher, Managing Director of Système U, “we really feel that behaviors are changing even more. Customers come more often to spend smaller amounts, they buy fresh products as they arrive, above all they go to the ‘essentials’ , we move on,’ he said Thursday on BFMTV/RMC.
And to summarize: “before I was talking about arbitration, now the word that comes next is restrictions.”
A brake on leisure products
“Fresh produce is down a lot, it’s down all year and it’s picking up right now,” he continues.
Another example is the leisure/gardening products that appear on the shelves today. “We feel a real brake on these products because in the short term they are not essential, what is essential is food,” he continues.
Obviously, “the promotional purchase criteria is at the top of the list of expectations today”, underlines the head of Sistema U. “When there is a lack of a promotional product in the store, there is real tension and we have never set up so many promotions”.
Towards a peak of 23/25% food inflation this summer
At the same time, the leader highlights “the resignation of the big brands. Some are getting very expensive, this is the result of the negotiations that have just been carried out and many customers are turning their backs on these great brands. Since the beginning of the year, the drop in volumes is almost 5%, it’s unheard of!” says the manager.
And with some commodity prices trending downward, what is the near-term price outlook?
“The rest (price increases, editor’s note) will last until the end of June, as we will pass as we go. The final landing may be around 23/25%. C “is considerable. I think it will calm down in the summer with the first signs of lowering in the fall. But with the high prices of electricity and gas, we are not going to return to the prices of before, we must be lucid”.
Source: BFM TV
