FRANCE – Carrefour, the French multinational retailer, has taken a firm stance by removing PepsiCo products such as Lay’s and Doritos crisps, alongside 7Up drinks and Lipton tea from its shelves due to what it deems as unacceptable price increases.
A spokesperson from Carrefour confirmed this decision to the news agency Reuters, emphasizing that the ban applies solely to stores in France.
While Carrefour restricts this action to France, The Washington Post, citing multiple news outlets, reported that the boycott is anticipated to impact stores in France, Italy, Belgium, and Spain.
With over 12,000 stores globally, Carrefour stands as one of the largest grocery chains worldwide.
This move by Carrefour coincides with ongoing challenges for Europeans facing elevated food prices. In France, food prices escalated by more than 7 percent year-over-year in December, peaking at almost 16 percent in March 2023, as per estimates.
In an attempt to alleviate the burden on consumers, retailers across Europe have negotiated with suppliers to lower food prices, employing tactics such as unfavorable shelf placements, reduced promotion, and higher prices, aiming to make these products less appealing relative to other brands.
In a bolder step taken in September, Carrefour initiated a ‘shrinkflation’ campaign, targeting PepsiCo in conjunction with Nestlé, Unilever, and Lindt & Sprüngli.
Simultaneously, the French government has launched a recent campaign targeting both food retailers and their suppliers to reduce prices, aiming to ease the strain on consumers. Additionally, reports suggest that the government has sought EU approval for regulations obliging grocers to inform consumers when a product’s size has reduced while maintaining its price.
Despite some easing in food prices, Carrefour’s recent stance against price hikes and the government’s focus on shrinkflation indicate lingering concerns about pressures on consumers.
Thierry Cotillard, head of the Les Mousquetaires supermarket chain, noted a reduction in food purchases, projecting that shop prices might not decline until around March 2024.
Carrefour’s CEO, Alexandre Bompard, echoed similar sentiments in August, acknowledging that consumers were scaling back purchases due to inflation’s impact on their spending power.”
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