The price gap between national brands and private-label products in France continues to narrow, according to the latest food-price data from IRI.
According to the findings, which are based on a basket of comparable products, food deflation in France slightly decelerated in November, showing a decline of 1.24% year on year, compared to 1.45% year on year a month earlier. However, the price of national brands fell 1.68% year on year (compared to 1.94% the month before), while private-label products fell 0.53% year on year (compared to 0.58% the month before), further narrowing the price gap between these two segments.
Overall, prices at French hypermarkets were down 1.21% in November, with prices in supermarkets down 1.37%.
Commenting on the findings, Barclays European Food Retail Equity Research said, "We would be wary of thinking that the November data marks a turning point in the deflationary environment in France. We believe that price competition remains fierce in France, mainly driven by an intense promotional activity, as Carrefour tries to regain top-line momentum and some independents are reinvesting the savings from their joint-buying organisation (Intermarché)."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.