France’s Système U Launches Anti-Inflation Basket

By Branislav Pekic
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France’s Système U Launches Anti-Inflation Basket

French retailers' cooperative Système U has launched a basket of 150 products at cost price for an indefinite period across its 1,670 stores.

The 150 private label products at cost price are available at Hyper U and Système U stores and include flour, pasta, mayonnaise, oil, coffee, honey, tuna, or yoghurt, milk, bread and burgers.

The French government is discussing with retailers the possibility of introducing an ‘anti-inflation’ basket of around 50 references that is to be launched on 1 March and last for three months.

The basket will include food and non-food products, fresh, frozen products, groceries, as well as cleaning and hygiene products.

Système U CEO, Dominique Schelcher, told AFP that the retailer ‘did not leave the table of discussions with the government, but wanted to take urgent action as there is an emergency regarding purchasing power and 1 March is still far away.’


Essential Products

France’s minister of trade, Olivia Gregoire, has welcomed the initiative of Système U, saying that it goes in the direction of the governmental project of a basket of everyday essential products at the best value for money.

Lidl has already announced that it would follow the example set by Système U, while other distributors doubt the usefulness of such an initiative.

Since inflation has returned to the forefront of concerns, the French grocery retail sector is stepping up initiatives, such as blocked prices, with the goal of attracting or retaining customers facing a food inflation of 13.2%.

For almost two years, Système U stores have been selling four fruits and vegetables at cost price each week.


In addition, the cooperative has also boosted promotional offers as well as the advantages in its loyalty card in recent months, as it seeks to relieve the pressure on purchasing power of households and limiting the effects of inflation on their consumption.

© 2023 European Supermarket Magazine – your source for the latest Private Label news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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