towards the end of the super-promotions?

Baptist Morin
modified to

6:43 a.m., March 15, 2023

It is a subject of intense tension in the large distribution: the bill of the deputy Frédéric Descrozaille. After being voted on in the Assembly and then in the Senate, it returns to the Joint Joint Committee. This bill would aim to rebalance the negotiations between manufacturers and distributors, but also consequences for the consumer with the end of super-promotions.

The famous “1 product bought, the 2nd free” is probably living its last hours. Today, the law does not limit discounts on hygiene, maintenance and beauty products. Hence the frequent big promotions on detergents, for example. This is what the Descrozaille bill wants to change: prohibiting these super-promotions would be the way to ensure better remuneration for suppliers and producers. But the measure will weigh on the consumer. Indeed, this would mean the end of more attractive prices.

Voted in the National Assembly and then in the Senate, the bill must now be discussed in the Joint Joint Committee.

A measure unfavorable to purchasing power

“The sad spirits would say that the moment is badly chosen”, underlines Philippe Moati, professor of economics at the university Paris Cité. “We live a inflationary period which weighs on the purchasing power of households and therefore this is not the time to adopt regulatory provisions against the purchasing power of households.

If the text is voted, promotions will be limited to 34%, as on food. Without forgetting a possible perverse effect of the measure: it should benefit both small suppliers and giants, the major national brands with already well-established margins.