View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 1, 2022

French retail tycoon Leclerc calls for inflation probe amid “suspect” price requests

Michel-Édouard Leclerc claims “half of the increases requested are not transparent”.

By Dean Best

Outspoken French retail tycoon Michel-Édouard Leclerc has called for a probe into inflation, arguing some requests from suppliers to up prices are “suspect”.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

Mr. Leclerc, the chairman of the executive committee of major French food retailer E.Leclerc called on the country’s parliamentarians to open an investigation into “the origins of inflation, on what is happening on the price front, from transport to consumers”.

Speaking to French broadcaster BFMTV, he claimed “half of the increases [in price] requested are not transparent”.

Mr. Leclerc said: “When you see that all the suppliers are coming in with transport bills that have increased by 15, 20, 30% – and in particular container prices which have increased by 30% – and, at the same time, you see that the transport companies are coming out with profits in the billions last year, it is clear it is not the unavailability of containers that has made what is rare expensive.”

A parliamentary investigation “would help us a lot to have this obligation of transparency, including before the public authorities”, he added.

In response, Jean-Philippe André, the president of French food manufacturing trade body ANIA, hit out at Mr Leclerc’s comments.

“Leclerc is a consumer expert and a very great business leader but it does not mean that when someone says something inaccurate very loudly that it becomes true,” André said.

“It is very serious to think that half of the companies ask for increases that would be suspect.

“We have food inflation in France to date of 4.5%, it is almost double in Germany and 10% in the Netherlands and Spain. Are all the food industries in these countries suspect?”

André added: “It is not with erroneous communication that we are going to solve our problems. We must tell the truth to people. You have to assume there are completely justifiable increases that will happen. Everyone has the information on them: you have to accept them.”

Related Companies

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food