Observatory on the threshold of sales loss on food and drinks

The Observatory A3 Distrib, Editions Dauvers and Lineaires have carried out a study following the coming into force of the new French regulation on the 10% threshold of sales loss on food & drinks. Leclerc is by far the most impacted distributor by this new regulation, with an average basket price increase of +5.1%, compared to Géant Casino +4.6% and Intermarché +4.4%. Leclerc is therefore losing its lead on other competitors, as this new regulation impacts most the discount supermarkets. On the opposite, more expensive brands not inclined to sell at loss such as Casino supermarkets and Monoprix are less concerned about the 10% threshold of sales loss, as they are applying margins of above 10%. In average, the basket price have even been reduced by -0.2% at Casino supermarkets and -0.3% at Monoprix.

B. Merlaud, with P Bachelier, 4th and 7th February 2019, www.lineaires.com
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