Inflation: what is it exactly?

[Obamot]

The large distribution (non-hard-discount) is stepping up to the plate, because they will undoubtedly be forced to reduce their indecent margins

Indecent margin? You dream.

About fifteen years ago, when we changed site, to move from almost the center of town, to be at the exit of the city, the mayor asked us to leave part of it in the center of town.

We had done the study, and we planned to leave a small 2000m2.

But above 1000m2 you need permits, which we didn't get, I'll spare you the details.

On 1000m2, we can only keep the "food", in the broad sense, and no bazaar, nor textile...

And the accounts were quickly made, if we wanted to keep the same prices on each side, impossible to do without being negative....

Oh well then, sorry for my mistake. Which seems rude as well.

There's still something I can't explain.
It's the price increase of 20% and more, following the introduction of the euro...?
(but I do know that those 20% trickled down, ie everyone ended up having to go up 20% through the trickle down... But salaries didn't always follow?

[Macro]

I know a director of hyper... It's not misery... But you have to have strong nerves and kidneys...

[Christophe]

There you dream...

They may be investing a little more in the fight against theft....Indeed, it can make them lower their margins...Hard discounters will have to take security guards and cameras...Because the ceusses who can no longer go to mow at leclerc will meet at home

Their margins are not high...I was talking about it this morning with my accountant, it's 15 to 30% on food according to him...confirmed by INSEE: https://www.insee.fr/fr/statistiques/1304045

For food products, margin rates are between 13 and 27% in hypermarkets and supermarkets and close from one family of products to another.

BUT they pay in the very long term (at least 60 ie after having sold the stock generally...) and above all, once you are in the "matrix", they renegotiate the prices and volumes of purchases as they want with small producers and SMEs!

In short, they hold you by the Corones...

ps: about hard discount, LIDL apparently had very bad results in the last semester... but I don't know if we can still qualify LIDL as hard discount?

reps: those who find that 30% margin is huge have probably never sold anything commercially in their life...

[Obamot]

There you dream...

They may be investing a little more in the fight against theft....Indeed, it can make them lower their margins...Hard discounters will have to take security guards and cameras...Because the ceusses who can no longer go to mow at leclerc will meet at home

It's funny that you say that, because at the time when I had reconstituted a workshop with German “Lidl” tools, I saw security guards, then the economic situation eased and no more security guards. .. There we begin to see again,,,

[Christophe]

The large distribution (non-hard-discount) is stepping up to the plate, because they will undoubtedly be forced to reduce their indecent margins

Indecent margin? You dream.

About fifteen years ago, when we changed site, to move from almost the center of town, to be at the exit of the city, the mayor asked us to leave part of it in the center of town.

We had done the study, and we planned to leave a small 2000m2.

But above 1000m2 you need permits, which we didn't get, I'll spare you the details.

On 1000m2, we can only keep the "food", in the broad sense, and no bazaar, nor textile...

And the accounts were quickly made, if we wanted to keep the same prices on each side, impossible to do without being negative....

Anyone (apart from him) understood something ???

[Macro]

yes me.. But it's because I know a bit about the mass distribution industry... And the margins are actually much lower than you might think....

[Christophe]

If I guess I think he said he was freelance in a small supermarket then?

I had seen a report a few years ago: the independents of this type (Carrefour Market or City and cie...), they bought (at least certain products) at the head office more expensive than what the hypermarkets sold directly to the customer...and I'm not talking about franchise fees...

A big disgusting system!

[phil59]

And I remind you, that a hyper needs about 24% gross margin, to be able to be more or less in the nails, and not close.

At the time of the transition to the Euro, we stupidly applied the early "exchange" on all products.

Suppliers have almost played the game, not touching prices, even going to 5-10% less material, neither seen nor known!

And little by little, it got a little carried away, at all levels.

[phil59]

If I guess I think he said he was freelance in a small supermarket then?

I had seen a report a few years ago: the independents of this type (Carrefour Market or City and cie...), they bought (at least certain products) at the head office more expensive than what the hypermarkets sold directly to the customer...and I'm not talking about franchise fees...

A big disgusting system!

Not sure, you may be confusing the price charged, and the price we call 3 times net!

[Christophe]

Well at the time, that's what the franchisee said...

The report was a France TV thing...special correspondent or Elyse Lucet's stuff like Complément d'Enquête...I think you can find extracts on youtube...

In short, not very important, but that explains why small markets cannot compete with hypermarkets despite the same name!