A new law aimed at regulating promotions on non-food products will come into effect on March 1, 2024. This concerns limiting the rate of reduction on food items to 34%, with the aim of reducing the impact of promotions on producers.
A measure that marks with distributors
The measure, backed by Renaissance MP Frederic Descrozeil, is part of improving relations between suppliers and distributors. According to the MP, it will relieve pressure on manufacturers, especially small businesses that do not have the ability to offer significant discounts. However, this law is not unanimous. Indeed, many distributors believe they have the right to pressure suppliers to offer promotions.
According to the parliamentarian, this discount has a negative impact on the economy. “Less than 80% discount on a given product, 90%, which is essentially paid by the supplier, is not economically healthy.” He emphasized in an interview. He believes, moreover, that these promotions are just a marketing approach, aimed at encouraging the customer to visit the store, which will undoubtedly generate consumption.
A law that revives competition between supermarkets
On the other hand, the Renaissance MP wants to clarify that the law is not intended to restrict promotions on non-food products, contrary to what some traders have mentioned. “Promotions are authorized up to certain thresholds in value and volume. The law provides that it is no longer possible to promote more than 34% of the value. Specifically, if a customer buys two products, the distributor may offer a third, but no longer a “buy one, get one free” option. He clarified.
It also explains that the measure will not jeopardize the purchasing power of households. “What I have to say to customers and I am willing to bet that after a year of full implementation of the text, the prices will decrease”, He assured. On the distributor side, the manager of Crossroads started a fight to ban this law which they believed to be ” adverse to purchasing power ” Despite these protests, as well as protests from other hypermarkets, the Descrozaille law will go into effect on March 1, 2024.
After the announcement, retailers launched extraordinary promotions on non-food products, with discounts sometimes reaching 90%. Moreover, the Carrefour group also displayed the words ” The promotion is banned from March 1 » Announced a discount of 80% on its prospectus. Intermarche Also get in on the game with promotions of up to 90% on perfumery, hygiene and drugstore products.
