VIDEO. ‘We don’t care about your starting price’: ‘Complément d’Enquête’ earned the record of negotiating with a major retail mall

Let’s call him Arthur, he works for a food giant. He agreed to chronicle for the magazine some of his exchanges with major convenience store brands grouped together in a shared mall. The one created by Carrefour, Système U, Cora and Match at the end of 2018 is called Envergure. Intermarché and Casino’s, which will be merged in 2021, is called Auxo – named after the goddess of growth in Greek mythology.

Arthur has already had a first meeting with the Auxo buyers. The continuation of the negotiations promises tension. The stakes are high: the plant’s purchases account for a third of his employer’s turnover. “The factory demands a price reduction, he explains, if we have to increase our prices by 5 to 6% to partly cover the rising costs. So a lot of stress before this second meeting… The first was extremely difficult and I think the second will be just as difficult.”

There is no question of buying more expensive suppliers

At the end of the line, the person he is talking to refuses to buy more expensive products and argues with better offers from the competition. “Your starting price, no matter what matters, is the finish line”, he is contradicted. When Arthur tries to argue that production costs have increased six or seven times since the beginning of the year, he is told “Contest” [avec les enseignes de la centrale Envergure] : “In a race there are firsts and lasts”.

“We think that’s a crazy thing: They only think about maintaining and increasing their own profitability and pushing back any discussion and calls for inflation to be taken into account.”

A rep from a major food brand on their exchanges with major retailers

to “Further investigations”

However, since January 2022, trading rules have changed. To protect farmers’ incomes, the EGalim 2 law requires supermarket brands to accept price increases if they are linked to increases in agricultural commodity prices. However, Arthur’s company buys a lot of grain, and prices have skyrocketed in recent months. But his interlocutors don’t have the same reading of the legislation… They do “ready, yes or no, to take into account the current economic situation and accept inflation?” he finally asks her. The answer is clear: it is “nope”.

Excerpted from “Inflation: The Blows of Consumer Markets,” a document viewable in Supplemental Inquiries on September 1, 2022.

> Reruns of France Télévisions news magazines are available on the Franceinfo website and its mobile application (iOS & Android) in the “Magazines” section.

Kaddouri Ismail

I am Ismail from Morocco, I work as a blogger and online marketer. I am also the founder of the “Mofid” site, in which I constantly publish many important articles in the field of technology, taking advantage of more than 5 years of experience working in the field. I focus on publishing in a group of areas, the most important of which are programming, e-marketing, digital currencies and freelance work.

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