Eyes on the Wallet: Businesses and Individuals Adapt to Rising Prices
Both businesses and individuals are keeping a close eye on their wallets and cash flow as prices continue to climb, with everyone seeking solutions to spend more wisely.
Black Friday: A Time for Spending and Saving
For the past three years, Black Friday has been the prime commercial period of the year for most retailers. Black Friday promotions have extended in duration, now spanning a period of about ten days from Friday, November 18, to Monday, November 28. It has particularly gained momentum due to consumers’ fear of price increases due to inflation. In 2021, it was already considered preferable to purchase Christmas gifts with discounts reaching up to 50%. According to a PwC survey, last year, 64% of shoppers made their purchases online, compared to 36% in stores. Despite this, the market share of physical retail stores remains higher in France than in Germany (23%). Major retailers in France, such as FNAC, Darty, or Leclerc, have become significant players in e-commerce. However, Black Friday is criticized by those combating overconsumption, a highly relevant theme in this period of climate transition.
Will the Price of Bread Increase?
Both industrial manufacturers and artisan bakers-pastry chefs are seeing their bills multiply exponentially. Most large companies have implemented austerity measures, including the French Federation of Bakeries-Pastries Enterprises (FEB), which includes 150 production sites, 1,600 sector stores, small and medium-sized enterprises (SMEs), franchise networks, and international companies. To support them, the French National Confederation of Bakeries-Pastries (CNBPF) has just published an Energy Austerity Guide for its 33,000 members.
Food Inflation in France: 10% in Supermarkets
After crossing the 5% threshold in June, food inflation is approaching 10%. This observation was made by the analysis firm IRI France, which published data collected at the end of September. It now finds that prices of consumer goods have risen by 9.11% over the past year. Inflation for food products alone is 9.75%. Frozen meats have even seen inflation reach 30%. In just one year, the receipt for a full grocery cart has increased by nearly 12.4% to reach €115.03. Prices for items like sunflower oil have skyrocketed by 137%, with a liter costing €3.49 compared to €1.47 in September 2021. Consequently, staples like pasta, frozen fish sticks, and basmati rice have increased in price by nearly 29%. Ground beef and potato chip packets have also experienced a 26% increase.
Increase in Navigo Pass on January 1, 2023
In Île-de-France, the monthly Navigo pass will increase from €75.20 to €84.10 in 2023. Île-de-France Mobilités announces a 12% increase in the monthly rate of the Navigo pass, which allows for travel on the public transportation network in the Paris region. The subscription will thus rise from €75.20 to €84.10, a significant increase considered substantial by users. However, companies will not see an increase in their contribution. Transport Minister Clément Beaune has announced an “exceptional aid” of €200 million “to prevent the Navigo pass from becoming unaffordable.
