How Carrefour is compensating (part of) the rise due to the new Food regulation

With the new food regulation, there is an increase of +10% on the threshold of sales loss on food products, and a threshold of 34% on discounts. According to Nielsen, 87% of the French people have not heard about this new regulation, but 33% of them are expecting an increase in price on products. In this context, brands are adopting new strategies. Carrefour will offer vouchers of a few cents to €1.50 euro per product, credited on customers’ loyalty cards. Customers who hold Carrefour’ loyalty cards will also benefit from a retention incentive system, with an additional rebate of 10% on discounts on big brands. Other retention incentives include permanent discount of 10% on Carrefour’s private labels. With those measures, Carrefour aims to reassure its clients. Refunds and other vouchers will only compensate part of the increase in prices.

30th January 2019, B.Merlaud, www.lineaires.com
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