French Food Retailers - comment

French grocery firms including Carrefour, Intermarché and Système U supermarkets have all recently announced freezing in the prices of essential daily products in an attempt to limit food inflation in France. This follows discussions held by the French Finance Minister, Bruno Le Maire and the French retailers in late February seeking to limit food inflation. Depending on the level of price control (set by the retailers as opposed to government), this will limit margin and profitability at the retailers.

However, Casino and Naouri may obtain other benefits from complying with the minister in relation to Casino/Rallye’s further financial restructuring.