Carrefour chief executive Georges Plassat has said in an interview with Le Journal du Dimanche that he believes the hard-discount retail model negatively affects the industry in terms of jobs and value, Reuters reports.
Plassat stated in the French weekly that even though it is imperative that Carrefour is competitive and that “price is crucial”, it is the case that the “systematic prioritisation of the low-cost model and the never-ending hunt for cost reductions is destroying jobs and value."
Traditional supermarket chains in France have fettered the progress of hard discounters to a far greater extent than in Germany or the UK.
It has been posited that this has been achieved through price campaigns and by employing fewer promotions, which are less likely to confuse shoppers.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly.
