Thank goodness—relief is finally on the horizon for French shoppers. After months of tense negotiations, major French supermarket chains have reached agreements with food industry suppliers, securing what the Federation of Commerce and Distribution (FCD) has described as “quasi-stability” in purchase prices for 2025.
This long-awaited outcome follows years of soaring food inflation that have stretched household budgets across the country. Now, with agreements in place covering the vast majority of suppliers, retailers are expressing cautious optimism that price stability at the supplier level could translate into a more predictable year for consumers.
Negotiations Mark a Turning Point
According to Layla Rahhou, General Delegate of the FCD, most contracts have been signed, with only a handful of exceptions. Smaller and mid-sized enterprises reportedly finalised their agreements early in the process, while multinational giants held out until the eleventh hour, prompting government oversight to ensure fair play and legal compliance.
The backdrop of these discussions has been fraught, marked by supplier frustrations and heightened political interest. Still, the end result is seen by many as a rare moment of consensus in an industry often defined by friction.
How This Affects Consumers
Retailers pay suppliers an average of 72% of the final retail price, meaning that the negotiated purchase price plays a significant role in shaping what shoppers pay at the till. For example, a product retailing at €2.50 costs the supermarket around €1.80, with the remainder covering operational costs such as logistics, energy, staffing, and store maintenance.
While retailers are free to set consumer prices independently, the stabilisation of input costs offers a foundation for less volatile pricing—welcome news in a nation still grappling with cost-of-living pressures.
Push for More Transparency in Farmgate Pricing
The discussions also reignited debate around the Egalim laws, which aim to protect farmers by securing fair pricing during retailer-supplier negotiations. Retailers have reaffirmed their commitment to supporting agricultural producers, but have also urged for more visibility around raw material costs, particularly as global commodity prices remain unpredictable.
A Moment of Reprieve—But Will It Last?
Though welcomed by both industry insiders and consumers, the deal is not a cure-all. Market forces, energy costs, and global events still have the potential to disrupt pricing in the months ahead. Yet for now, the consensus across France is one of cautious relief.
In a landscape where shoppers have grown weary of price shocks and suppliers have been pushed to their limits, this agreement represents a rare win-win. And for that, many across the French retail and consumer sectors are saying: thank goodness.
