The increase in food product prices, which began in the first quarter of 2022, continues. It could reach 18% in June (inflation over 1 year) before stabilizing in summer. However, no significant decrease is expected for several months.

The French, who felt the first effects at the end of October, are now making trade-offs in their daily expenses, particularly in food.

They are changing their habits, buying more on promotion, splitting their purchases, reducing their consumption of red meat, fish, fruits and vegetables, opting more for canned and frozen foods, and favoring private labels and budget products, at the expense of more expensive national brands. This trend is likely to continue, as one in four French people plans to further reduce their food expenses in the coming months.

In this context, how should we react?

The 22 promotional operations, a sense of service ingrained in your DNA, thousands of low prices, an offer adapted to daily needs, avoiding waste and encouraging responsible consumption, your geographical proximity reducing transport costs are your main assets.

But it’s important to know that, in continuation of the Anti-Inflation Quarter operation initiated by the government, major retail chains have decided to protect the purchasing power of the French by multiplying price-freeze operations, cost-price offers, anti-inflation baskets, etc., dedicating significant communication budgets to these efforts. All have focused on their own brands, because thanks to their excellent quality-price ratio and the margins they generate, they are always the big winners in inflationary periods. Therefore, it is on your Belle France product range that you must act as a priority.

Belle France and Ecoprix are your primary anti-inflation weapons!

Private labels are taking an increasingly important place on the shelves. In February, their market share in supermarkets was close to 30%, while it didn’t reach 27% a year earlier. And within this category, budget prices are outperforming (+7% in one year).

Today, private label products are present in 98% of shopping carts and baskets. This is the result of a trade-off phenomenon created by inflation that pushes national brand buyers towards private labels, while those who mainly bought private labels are turning to budget products.

It is therefore crucial and urgent to apply the winning rules of merchandising…

• Available products: review the product flow and check line by line your stock of private label Belle France and Ecoprix products (60 references) to offer a committed and reassuring price range.
• Visible products: place private label products at eye level, or in end-caps. Ecoprix products will be left at the bottom of the shelves.
• Noticeable products: implement the ‘armada’ of POS (Point of Sale) materials that exist. Shelf stoppers, stickers, shopping cart handles, flags, shelf edge strips…
• Correctly priced products: apply the recommended selling prices, and check that no price tag is missing.

The Belle France ‘Anti-Inflation’ Operation

Some of you have already implemented it, but for those who haven’t yet, let’s remember that Francap offers to participate in the national effort to fight inflation by offering your customers a 10% advantage on a selection of 50 everyday products, chosen from all Belle France families, until June 15, 2023.

This advantage is realized, depending on your supply center, either as an immediate discount or as points on the loyalty card.

To ensure the operation reaches its objective, which is for your customers to realize the effort you are making to help them during this difficult period, a complete kit of specific POS materials is made available to you:
• shelf stoppers;
• posters;
• radio message;
• templates to communicate on your local Facebook pages (available on Facelift).