Prices then fell but not industrial tariffs

October 19, 2011 12:00 AM
Prices then fell but not industrial tariffs

The current crisis and shortage of fuel penalize your stores

At the end of last week, during which a third party our gas stations have not always been apprivisionnées in gasoline, the consequences were limited. But we found that people had made precautionary purchases, then a decrease in attendance. This will impact the numbers of French consumption for October.

Since the beginning of the year, the Centres Leclerc earn share market on their competitors. What do you attribute this success

At end of October, we will have achieved an increase in turnover (over the same period of the previous year, Editor's note) of 5. Consumption is its rank. We also find that our strategy is focused on the prices attracts consumers.

For me, while much is said about the end of the traditional model of hypermarket, what matters is not the store format, this is the price. We see the success of the law of modernization of economy (LME) which made dealers the freedom to negotiate. We've gone from 5 inflation inflation zero in the rays. With the decline in prices, national brands regained ground on trademarks of distributors and even the hard discounters are now hampered. We consider that there is urgency to maintain the pace of consumption and, therefore, do not touch the LME.

Do you really think that the LME is threatened

The LME is such a success that I do not understand why the Government is not claiming this success. From 1998 to 2008, prices have skidded because of the Galland Act making almost automatic increases required by industry. It is the Minister of the economy Nicolas Sarkozy, who took it in wrong way. Today, it is clear, the agricultural and agri-food lobby spread the wants will revise the law.

While there is a review board business practices (CRC) responsible for processing the Act points that meet some difficulties of application, it is to organize outside this instance of the meetings on the same subject. Hervé Novelli (the Secretary of State in charge of trade, Editor's note) has assigned all signs to justice with a true presumption of guilt. All of this to hurt, to interfere. Yet, the CRC found at some points, that the LME did not challenge major and comprehensive application meet.

Far can go to your defence of the LME

There are right revanchists club which has not digested the creation of the LME and who wants to go back on it. It is still surprising to see that it is the Minister of trade discredits, while the Minister of Agriculture, Bruno Le Maire or the Minister of industry, Christian Estrosi, not stigmatize us. Hervé Novelli should not forget that it is also the Minister of consumer.

2011 Trade negotiations will start. Will you accept price increases proposed by the industry because of the escalation of the cost of raw materials

We will do so to maintain the income of farmers. Including formally we will pursue the agreements with several channels. In addition, we will continue to offer SME-specific treatment. We do this for a time, with, inter alia, multi-year contracts or in returning them to our regions, which is easier for them than to confront the national negotiations in the same way as l ' Oréal and Nestlé. We also take care to not weigh more than 25 of their turnover to not weaken.

What attitude do you adopt with the large groups

With regard to multinational companies, which account for 50 of our turnover and arrive with increases in rates of 6 to 8, we will negotiate foot to foot. Have already made us the blow of rising raw materials in 2008. Prices then fell, but not industrial tariffs. Everyone has, also, that the margins and profits for major brands have significantly increased. Today, they can take on their margins, as we have done.

Finally, raw materials represent only a part, often minimal, of the cost of processed products. All distributors know very well break down it. I would add that we know that the rise is more due to speculation and objective data. I am also raises questions when I see some poultry manufacturers propose on behalf of their breeders of significant price increases, while they are providing them in cereals at a 40 increase in prices.

You put in question the operation of the channels

I'll write to Philippe Chalmin, President of the Observatory of prices and margins, to ask him to investigate, and he has the power, on relations between farmers and those supplying raw materials. Trade negotiations are for us to all the more important, as the LME, that we are determined to continue the defence of the purchasing power of the main item of our strategy.