French retail giant stops selling 'overpriced' products

Carrefour has told customers in four European countries that it will no longer sell some consumer goods with prices rising to "unacceptable levels".

On January 4, Carrefour - one of France's largest supermarket chains - said that PepsiCo 's shelves in France, Italy, Spain and Belgium would be marked with no more stock "due to unacceptable price increases", a Carrefour spokesman said.

Carrefour's move will affect more than 9,000 stores in the four countries, or two-thirds of its global supermarkets, according to its 2022 report. Reuters reported that at a Carrefour supermarket in France yesterday, some PepsiCo products, such as carbonated soft drinks and snacks, were missing from the shelves.

"We have been in discussions with Carrefour for many months and will continue to do so in good faith to ensure the availability of our products," PepsiCo said in a statement.

A product with an unacceptable price increase label at a Carrefour supermarket. Photo: Reuters — A product with an unacceptable price increase label at a Carrefour supermarket. Photo: *Reuters*

Carrefour customers welcomed the supermarket chain's move. "I'm not surprised. I think a lot of products will be left on the shelves because they are too expensive. They are things we will not buy," Edith Carpentier told Reuters.

PepsiCo said in October 2023 that it planned to raise prices “insignificantly” in 2024, as demand remained strong despite higher prices. Last year, the company raised its profit forecast for the third consecutive time.

Carrefour is the most aggressive retailer in fighting big food and consumer goods companies on price. Last year, it placed warnings on 26 products that had not increased in price but had been reduced in size by their manufacturers.

According to Reuters , several other retail chains in Germany and Belgium have also stopped importing goods from consumer goods manufacturers, in order to renegotiate prices during inflation.

To cool inflation, the French government has asked retailers and suppliers to complete annual price negotiations in January. This deadline is two months earlier than usual.

France regulates its retail sector more tightly than other European countries, requiring supermarkets to negotiate prices only once a year with producers, in order to protect domestic agriculture .

Last year’s negotiations took place at the start of the year – at the height of the price crisis – which saw prices rise across the board. This hit supermarket sales, forcing them to negotiate lower prices this year.

Ha Thu (according to Reuters)

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