Leclerc still cheaper than Carrefour or Casino

Difficult trade negotiations between distributors and industrials came to a legal close on the 28th January. None of the companies want to give too much distance in terms of price, despite the fact that household food expenditure dropped 0.5% in January (+0.1 over 12 months) according to Insee. ''We are in a price war which generates loss of value and deflation'' warned Serge Papin, CEO of Super U a month ago, ''there is a lack of responsibility from the distributors and leaders''. This opinion is not shared by Michel-Edouard Leclerc who claims that ''We are coming out of a four year growth in prices. It is not because others are falling back that means we are in deflation. The consumer is not ready to pay more.''

Géant, coming in as the 2nd most expensive hypermarket, hammered its prices 8 points! Result: Casino France's turnover is in a 4.8% decrease in 2013- resulting in operating income nosediving 43% and representing 1.3% of sales.

Carrefour hesitates in the ''low price all year round'' concept, blocked between two demands: clients wanting low prices and shareholders wanting to see profit.

Leclerc's turnover has grown almost 4.4% to €45.6 billion, the highest growth in 2013. They have also reduced their margin which makes up ''almost one third of our net profit, which we will reinvest to maintain a flow of customers'' they said in 2012.