The publication writes that in light of the special attention paid by the authorities to rising prices, some retail companies are looking for innovative ways to reduce inflation. “Kommersant”.
According to manufacturer sources, especially the Russian structure of the French Auchan (Auchan) has asked its suppliers not to increase prices until the end of 2023. Auchan also warns that they will apply to regulatory authorities if they persistently try to increase prices.
Suppliers see such actions of the company as an attempt to transfer all the risks of instability to themselves, and analysts see it as a desire to protect themselves from possible claims.
Auchan in Russia is calling on its suppliers to cooperate to jointly curb price increases before the start of the New Year holiday.
According to Infoline forecasts, Auchan became the sixth largest FMCG chain in Russia with revenues of 272.4 billion rubles in 2022. In the first half of 2023, the chain’s turnover fell by 2.2% compared to the previous year, but exact figures were not given. According to Infoline, as of July, the company has 230 stores under the Atak brand.
Auchan is part of the French group Association Famille Moulier, which also includes building materials retail chain Leroy Merlin and sporting goods stores Decathlon. While Leroy Merlin reported that control of its businesses in Russia could be transferred to the Russian administration due to Russia’s military activities in Ukraine, Decathlon sold its business in the country to ARM. Auchan states that it continues its activities in Russia.
According to sources, nothing is known to suggest that other retail chains have made similar demands to their suppliers recently. In November 2020, Verny had already announced its decision not to increase prices until December 31 due to the pandemic and reduced household incomes. However, “Verny” refused to comment.
Previously Mishustin in the name Avoid excessive optimism.