With discounts of 70% on a 950 gram jar of Nutella, French foodretailer Intermarché caused quite a stir in January last year. But the bill followed: the supermarket chain was fined 375,000 euros.
Sell at a loss
“The four cheapest weeks in France”: with this stunt, Intermarché started off the year 2018. Discounts of up to 70% on major brands such as Perrier, Pampers Baby-Dry, Carte Noire coffee and Nutella, caused a rush to stores and even led to fights between bargain hunters. There was a lot of criticism, not least because selling at a loss is forbidden in France – just like in Belgium.
The retailer soon admitted that the promotions were not sustainable. “We are now obliged to stop the discounts of up to 70%,” said CEO Thierry Cotillard. “We did not expect these reactions, but we cannot be held responsible for the behavior of others.” In the meantime, such discounts have been made impossible: new French legislation restricts stunt promotions.
In addition, it recently appeared that Intermarché did not get away with the action with impunity: the chain paid a fine of 375,000 euros, according to the annual report of the DGCCRF, the French administration responsible for competition, consumption and the fight against fraud.
