Report
Food Retailing Negotiations to reopen with c.1pt of additional inflation ahead by May
With food inflation re-accelerating after the invasion of Ukraine, the French annual negotiations are reopening. At this stage, we foresee around one point of additional inflation by late May to 4-5% between suppliers and retailers. Systeme U and Leclerc are shifting their strategy and becoming more eager to absorb part of this inflation in their P&L… Not raising their in-store prices by another 100bp implies a 70bp cut on gross margin and c.EUR200m at Carrefour France (more than offset by cost-cutting) and c.EUR90m at Casino France. We continue to favor Carrefour for its self-help measures and its M&A appeal, context seems to improve in Europe for Ahold Delhaize, Casino remains in trouble.
Provider
Bryan Garnier
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
Clement Genelot
Other Reports from Bryan Garnier
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.