Has peak inflation been reached? After months of increases in the prices of consumer products, the increase seems to have been less intense in recent weeks.
In any case, this is what Michel Biero, the head of Lidl France, points out.
While it is still too early to speak of a much more moderate return to price increases, forecasts for the end of the year may have been too alarmist.
“We do not lock prices”
While consumer prices are buoyed by rising energy, transportation and raw material costs, the latter have fallen significantly in recent months. Declines that may be beginning to be reflected in the price of consumer products.
There is no question, however, that brands will cut back on promotions and “buying power” deals. The start of the school year is a crucial period for large retailers, the second most important after Christmas in terms of turnover. Hence the operation of the competitor Carrefour that announced on Monday the blocking of the price of a hundred basic necessities.
A path that Lidl does not want to take.
The price freeze also forces the distributor to put pressure on its suppliers or cut its margins in order to maintain price freezes in an inflationary context.
Lidl is the brand that benefited most from the period of inflation. According to Kantar, the group gained another 0.2 points of market share in July to reach 7.5%. The discount store has benefited from gaining more than 660,000 customers in recent months.
Source: BFM TV
