PARIS (Reuters) – The Carrefour share fell sharply on Tuesday at midday, posting the largest drop in the CAC 40, while the group’s CEO, Alexandre Bompard, warned of a drop in consumption in France, in particular on basic necessities due to high prices.
On the Paris Stock Exchange, around 10:00 GMT, the stock fell 3.2% to 17.64 euros against a gain of 0.4% for the CAC 40.
“It’s a tsunami of deconsumption. When the essentials are no longer accessible, you have to act quickly,” said the boss of the French distribution giant on Franceinfo, referring to food inflation at 20% over two years.
Alexandre Bompard also wanted a one-year moratorium on the application of the Descrozailles law, which leads to the limitation of promotions, particularly on beauty, hygiene and care products.
The Carrefour CEO and other supermarket chain executives are due to meet Finance Minister Bruno Le Maire on Wednesday to discuss the high cost of living.
The Descrozailles law, passed in March 2023 and which should come into force in March 2024, notably limits to 34% the extent of the promotions that a distributor can offer on this type of product, while Carrefour is for example free to sell today. today a barrel of washing powder with a 60% reduction, explained Alexandre Bompard.
According to him, the continued rise in prices on the shelves is also linked to manufacturers who seek to “buy time” by refusing to renegotiate despite the decline in commodity prices.
“The price declines, they started now for some, 9 months ago. The manufacturers have decided, it’s their choice, not to pass on the declines,” he said.
“It’s a choice, I was going to say economic, not to accompany the declines in raw material prices by saying basically the renegotiation, it will take place as it was supposed to take place next March, we will gain a little time “, he added.
The Carrefour action could also be mistreated due to an article in Le Monde published on Tuesday which takes up an investigation by the investigative media “Reporter Brasil”, accusing one of Carrefour’s suppliers, the Frialto group, of sourcing meat from a breeder suspected of deforestation.
In an email to Le Monde, Carrefour denies having “purchased meat from the farms mentioned” by the investigation.
“The association of the company with criminal practices is false and irresponsible”, adds the French distributor.
(Written by Claude Chendjou, with Dominique Vidalon, edited by Blandine Hénault)
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