stopthatgirl7Sep 14, 2023

Carrefour sticks price warnings on food to shame suppliers

French supermarket chain Carrefour has slapped price warnings on products from Lindt chocolates to Lipton Ice Tea to pressure top consumer goods suppliers Nestle, PepsiCo and Unilever to reduce inflation ahead of much-anticipated contract talks. #worldnews

https://www.reuters.com/business/retail-consumer/carrefour-sticks-price-warnings-food-shame-suppliers-2023-09-14/

Carrefour sticks price warnings on food to shame suppliers

French supermarket chain Carrefour <a href="https://www.reuters.com/markets/companies/CARR.PA" target="_blank">(CARR.PA)</a> has slapped price warnings on products from Lindt chocolates to Lipton Ice Tea to pressure top consumer goods suppliers Nestle, PepsiCo and Unilever to reduce inflation ahead of much-anticipated contract talks.

Reuters
Show threadshockwave
Yeah...except the supermarkets are renowned for treating suppliers like shit. This is pure white washing. Source - my fiancé's dad used to be a manager of a large supermarket in France (but not Carrefour).
Sep 14, 2023 at 10:44amWeb
Show threadstopthatgirl7Sep 14, 2023

except the supermarkets are renowned for treating suppliers like shit.

How so?

Show threadYoryoSep 14, 2023

Supermarkets are the source sales for vendors so they have more power during negotiations. Alot of vendors want contracts with big businesses (supermarkets) because their supply chain network but give up a lot of negotiation power.

An example. Vendors mostly use a cost plus pricing. Think cost+oh&p(15%)=price to store. During contract negotiations vendor A can push for an increase in price due to cost escalations or just cut down in their oh&p percentage. Eventually the percentage can get so low that it's not worth the business. So vendor A can push for a price increase but the supplier can also push back and threaten to go with vendor B.