Communicating Rebellion of Mass Distribution before the Dacrozeil Act

€8 for a mega-pack of 108 baby diapers, €6 for four cans of laundry detergent or €1 for three bottles of shower gel. The promotion displayed by Carrefour in its latest catalog released this Tuesday, February 20, 2024 is exciting. And for good reason: 1^er March, the brand, like all those in mass distribution, will no longer be authorized to offer such discounts. The so-called Dacrozeil Law (named after the person who introduced it) will come into force and limit promotions on non-food products to 34%.

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This new Carrefour prospectus, the cover of which is very glossy “80%” and covered with a frame. “1 is prohibited from promotion^er kuch”, therefore forming a kind of last stand. The group was indeed particularly active in the fight against this law “Adverse to the purchasing power of the French”, by its director Alexandre Bompard. In August 2023, he requested a one-year moratorium on the application of this law. A proposal supported by other players in mass distribution, such as System U’s General Director Dominik Scheltcher.

Price image problem

But they could not win their case, and threw their last strength into this battle. “They are all making money to appear as the one who will be the strongest against this law. It is a price image issue for them. Carrefour is the most violent in this game, but so is everyone”, notes Oliver Dowers, a journalist specializing in mass distribution. Intermarch, for example, explained in a press release on January 10 that it was launching “A range of exceptional promotions at Drug Stores, Perfumery and Hygiene (DPH)” With promotions up to 90%.

But when inflation is still weighing on the purchasing power of the French, why is the law banning such promotions coming into effect? The aim, stated by its proposer, Renaissance MP Frederic Descrozeille, was to prevent supermarkets from forcing their suppliers to lower their prices. It is actually the latter that finances the in-store promotions. However, the MP wants to protect small and medium-sized businesses that cannot afford it.

Also read: Lois Eglim: We explain why they crystallize the anger of the farmers

Legislation pushed by industrial lobbies

However, for Olivier Douvers, this argument has little value when we talk about non-food products: “In the food industry where there are a lot of small producers, it is much less here. DPH is a universe with massively large clusters. It is also Ilec (Institute for Consumer Business Liaison, Big Brands Lobby, Editor’s Note) Who pushed for the passage of this law”Says the expert.

So there are only a few days left to take advantage of this “Blocked Promo” and stock up on laundry detergent, toothpaste, or razors for the months (or even years) to come. After that, consumers have to settle for offers like 34% discount or 2+1 free.