Hello, welcome to LCP to watch or rewatch the best of the parliamentary week. In this episode, we look back at a hearing that took place in the Economic Affairs Committee. Alexandre Bompard, CEO of Carrefour, was heard on the situation of his group and that of the retail sector, against a backdrop of agricultural crisis and French concerns about purchasing power. Questions focused on distribution and consumption patterns, relations with Carrefour’s supply chains, with the central question of prices. Good hearing. See you later.
Before starting, we need to appoint a rapporteur for the proposed renewal of Mr. François Jacques as chairman of CNES. Mr. Arnaud Saint-Martin is appointed. This morning we are pleased to receive Mr. Alexandre Bompard, CEO of Carrefour, accompanied by his secretary general and chief of staff. Welcome. Our commission focuses on distribution and purchasing power. We have already heard from Leclerc, Les Mousquetaires, and will hear from Système U. Your hearing should allow us to address Carrefour’s situation, the evolution of distribution and consumption patterns, and relations with upstream agricultural sectors. Before giving you the floor for about fifteen minutes, I would like to ask a few questions. What changes in consumption patterns since the inflation of 2022–2023? How does Carrefour integrate these and contribute to preserving purchasing power? The French agri-food trade balance hit a low in 2025; are you sourcing more from abroad? Is there a price gap between French, European, and international products? The Iran conflict and Strait of Hormuz blockade have raised energy prices; how and when will this translate into selling prices? How do you reconcile low prices with fair supplier compensation? You launched the Concordis purchasing alliance with Coopérative U and RTG International; what strategy and objectives? Will it push prices down? How do you balance your development with maintaining independent shops in town centers? What complementarity between supermarkets and small local shops? Thank you in advance for your answers. You have the floor for about fifteen minutes, then we will hear group speakers for three minutes each and individual speakers for one minute each. Mr. Alexandre Bompard, you have the floor.
Thank you, Mr. President, ladies and gentlemen deputies. Since you allow me, I will make an opening statement, and then with Mr. Laurent Vallat we will answer your questions. I am very happy to discuss the distribution sector and its challenges. French distribution is a wealth for our country. Our mission is to solve daily the equation of controlling selling prices for consumers, fairly remunerating producers, securing supplies, and guaranteeing quality. This sector provides non-relocatable local jobs; Carrefour alone hires 40,000 people a year in over 300 trades. It is in contact with social reality; every French person is on average less than 8 minutes from a Carrefour store. Our stores are in rural areas and difficult neighborhoods. We are the first sector of social promotion in France. This sector is at the forefront of technological, societal, and environmental changes. It invests nearly 10 billion euros annually in modernization. This transformation is costly in a highly competitive environment. French commerce is one of the most competitive and most constrained in the world, with higher margin pressure, structural promotional intensity, specific regulatory constraints, and heavier production taxes. The sector faces polarization between the biggest and those who struggle, and new entrants like Action or Chinese platforms. Consumer behavior has become very prudent after hyperinflation, with strong pressure on margins and volumes. Add macroeconomic and geopolitical uncertainties. Historically strong French retail brands now suffer or even disappear. In this context, Carrefour tries to stay its course with a new strategic plan to 2030, investing in offer, price competitiveness, stores, fresh products, CSR, e-commerce, digital, and AI. Before, questions were about the future of physical retail; today the sector is proud of its resilience. I continue to regret that distribution is too often viewed with suspicion. This is paradoxical because we responded to public authorities during COVID and are among France’s favorite companies. My conviction: the temptation to intervene in prices is too strong in France. Commerce requires freedom of assortment, negotiation, and price setting. The customer always arbitrates. Let us preserve this balance so that commerce can fully play its economic, social, and territorial role. Thank you for listening. Mr. President, should I answer the list of questions now or will they come later?
They may come in other forms, but you can start answering. You still have a little time, so go ahead.
Alright, I’ll go ahead. You asked about changes in consumption since 2022. The hyperinflation shock: prices rose about 25% in two years, a huge impact. Before, only end-of-month was difficult; now mid-month, even beginning of month is hard. Volumes first fell, then consumption structure shifted strongly towards own brands—Carrefour brands—which are 30% cheaper and of equivalent quality. In 2018, own brands were 25% of our sales in France; now nearly 40%. So own brands have overtaken national brands in growth. Initially, consumption quality degraded: organic products declined, fruits and vegetables, fish, meat declined. Since mid-2025, things are rebalancing, but the current crisis could reignite inflation. Regarding the Iranian crisis, for now the main effect is on gasoline prices. We don’t see inflationary tension on products yet, not like the Ukrainian conflict because the economic cycle is different and there are no immediate shortages. However, depending on duration, there may be effects on nitrogen fertilizers and future harvests. For now, INSEE forecasts 2% inflation; the impact is still hard to measure. On low prices and fair producer remuneration: that’s the equation of our sector. Our main mission is purchasing power. The Égalim laws have helped by sanctifying agricultural raw material, but are imperfect. The key is knowing the raw material cost; often industrialists don’t provide it. On town center shops: Carrefour is the leading player in town center food retail with about 5,500 stores in rural areas, sensitive urban zones, and town centers under brands like Carrefour Express, City, Contact. I open 250–350 stores per year. They contribute to town center vitality. So those are the first questions. I have noted a couple more to come back to later.
Thank you very much, Mr. CEO, for your opening remarks and these first answers and analysis of the situation. We will now proceed to group speakers. First, the National Rally group. Mr. Robert Lebourgeois, you have the floor, Deputy.
Thank you, Mr. President. Mr. CEO, Mr. Secretary General. Nearly a month after the end of commercial negotiations, the conclusion is clear: tensions have reached an important level. Some actors denounce a climate more deleterious than before Égalim. The National Rally has denounced the useless complexity of these laws. All actors had agreed on a charter you signed as president of the Federation of Commerce and Distribution and CEO of Carrefour. This charter included an interesting axis 3 to valorize fresh products and better inform on origin. On origin information, my colleague Hélène Laporte defended a bill for origin labeling. My question is about valorizing fresh products themselves. It is known that the current model compresses margins on certain products, often highly processed products d’appel, and reconstitutes margins on fresh products with sometimes very high margins compared to producer prices. This raises public health and food quality questions. In February, you presented the Carrefour 2030 plan aiming for 50% of food sales from healthy products by 2030. I presume you might lower margins on fresh to orient consumers towards these products. Reversing the equalization logic by lowering margins on fresh and increasing on processed could also ease negotiations with industrialists while pursuing public health goals. The consumer association Familles Rurales even proposes imposing sale at cost price for a hundred healthy products. Have you made projections on such proposals, inverting your margin structure? An equilibrium that would favor French production over imported processed and fresh. Because there is no reason for foreign products to benefit from artificially lowered margins. Thank you.
Thank you, Deputy. Mr. CEO.
Thank you, Deputy. You have before you the CEO of Carrefour, the leading player in fruits and vegetables, butchery, and fish in France. We are market leaders. We source 100% of milk, eggs, and poultry from France, 96% of beef and pork. My objective is to continue developing French sourcing because it is the company’s choice and what consumers ask. You mentioned the 50% healthy products objective. That is around fresh and organic. However, I don’t fully agree with you on margin equalization; I believe our profession should let actors set prices. I am not a fan of administered prices; historically they have shown more disadvantages. On cost-price products, I launched 200 cost-price products to address purchasing power. On margin equalization: you are right that margins differ across products, but costs also differ. For example, Coca-Cola: can I set its price? No, Coca-Cola sets its price; it’s ultra-competitive. If I decided to sell Coca-Cola 30% more expensive, the commercial consequences would be disastrous. And conversely, my costs are not the same. Maintaining a fresh fruits and vegetables section requires a lot of work by teams, high costs for quality. For a Coca-Cola shelf, just pushing pallets. So the cost base is different, leading to different gross margins. That is why margins are not equal. Thank you.
That’s a minute of response. I know, but I let you finish the sentences and the idea, because your answers are important and interest us. For the group Ensemble pour la République, Ms. Danielle Brûlebois, you have the floor, Deputy.
Dear colleagues, I first want to thank you, Mr. CEO, Mr. Bompard, and your secretary general for your presence. On February 18, you presented your third strategic plan Carrefour 2030, described as offensive, refocused, and technological. It relies on a solid 2025 with improved operating margin in France. Your ambition for commercial conquest with clear market share targets and annual commitment to price competitiveness is a strong response to consumer and territorial expectations. By refocusing on three core countries—France, Spain, and Brazil—you concentrate resources where your leadership is strongest, while accelerating international expansion through franchising. A pragmatic strategy. AI with an investment of over 150 million euros becomes a central lever: equipping 250,000 employees with Gemini and deploying the Vision platform to transform productivity. However, as elected officials, we are concerned: how do you envision the evolution of jobs and training facing this technological shock? In Jura, Carrefour supports short food circuits and local agriculture by differentiating and showcasing local products. Can you tell us what share of food revenue is devoted to local products and the target for 2026–2027? During commercial negotiations, how do you adapt contractual conditions for small producers to guarantee visibility and fair remuneration? Finally, given the recent rise in oil prices, how is Carrefour establishing a strategy with supply contracts and logistics to absorb supply shocks linked to the war in Ukraine? You said your concern is consumer purchasing power, and we thank you for that.
Thank you, Deputy. Mr. CEO.
Thank you, Deputy. A word on technology: artificial intelligence will develop greatly in our stores. What I announced is first a training effort for all our employees. It is a subject that frightens, so all must be trained. In the next two years, all Carrefour employees will be trained in AI and will see how it can improve their work conditions. On your second question about local products: the share of local is constantly growing. We have developed many initiatives to make life easier for nearby farmers and breeders. A few years ago, it took 40 pages to be referenced at Carrefour; now it’s a one-page contract signed directly by the store manager. That facilitates local producers. The more local offer I have in store, the more performant my store is, so it is a strategic objective. On your last question about reconciling purchasing power and fair supplier remuneration: I think the Égalim laws have helped, but we need to continue working on transparency of raw material costs. The current geopolitical situation also affects energy costs, and we are monitoring that closely to minimize impact on prices.
Producers. As I said, the agricultural raw material is now protected. I no longer negotiate it. I welcome that. It allows fairer remuneration. Does it solve all problems? No, but it's an improvement you brought to the regulation of this sector.
Thank you very much. For the France Unbowed group, Mrs. Sandrine Nosbé, you have the floor, Madam Deputy.
Thank you, Mr. President, Mr. Chairman and CEO. You remarked in a Senate hearing that your business is polarizing between small and large. The cause is simple: the rich create the poor. First, you target 25% of the French market by 2030 and pay 50-60% of net income as dividends. Consumer prices have risen 23% since 2021, fuel prices are up, poverty is at record levels, wages stagnate. This will hurt consumers, suppliers, and organic farmers who capture only 10% of value added when 20% is needed. Second, Carrefour maintains commercial relations with Israeli companies involved in illegal colonization (Electra, Yenot Bitan, bank Hapoalim). Will you end these relations? How do you reconcile high dividends with protecting purchasing power, fair farmer pay, and balanced distribution? Thank you.
Thank you, Madam Deputy. Mr. Bompard.
Carrefour has no stores in occupied territories; franchise contracts exclude it. I've said this for four years. On purchasing power: we fight daily. We launched 200 products at cost, half with Nutriscore A/B. Ambition makes the group strong to invest and conduct CSR battles. Wealth is shared with employees, whose participation has tripled since I arrived. This balance allows development.
Thank you, Mr. Chairman and CEO. For the Socialist and affiliated group, Mrs. Mélanie Thomasin. You have the floor, Madam Deputy.
Thank you. You felt parliamentarians were demonizing large retailers; we only want to understand. Average farmer income is €55,000, beef breeders €19,800. Questions: 1) Carrefour sources abroad via a European purchasing center and gives unfavorable contracts to farmers. What is your response? 2) Competitors refused EU-Mercosur products. What is Carrefour's stance? 3) Will your market share increase (21% to 25%) and margin improvements come at the expense of French producers and jobs? 4) Concrete fuel price commitments? Thank you.
I won't repeat the French sourcing figures: for major sectors 95-100%, fruits and vegetables 85%. I source French when possible. Carrefour has 31,000 farmers in long-term contractualization, guaranteeing volume, price, and transformation; we do 40% of France's contractualization. On Mercosur: I'm the leading distributor in Brazil. Some Brazilian products (soy, oranges) already come to France; on meat, I buy Brazilian in Brazil, French in France. The 25% market share target means competitiveness, not just price. On fuel: my margin is 1-2 cents, I negotiate daily.
Thank you, Mr. Chairman and CEO. For the Republican Right group, Mr. Jean-Pierre Vigier. You have the floor, Mr. Deputy.
Thank you. Food sovereignty is key. How have the Egalim laws (loss-leader threshold +10%, promotions capped at 40%) changed consumer habits? How does Carrefour integrate these objectives in negotiations? What tools ensure production costs are considered? The European purchasing center Concordis (with U and RTG) can circumvent Egalim. What is its role? As rapporteur on local commerce, I ask about the development of proximity stores in city centers. What concrete commitments do you make to reinforce French products in stores? Thank you.
Concordis, created with U and RTG, negotiates with 45 global suppliers, only two French (Danone, Lactalis). For the other 43, no agricultural raw material. All negotiations happen in France and respect Egalim. Origin information is important; we are partners. There is a contradiction: consumers face French vs cheaper foreign strawberries due to differences in social charges, labor costs, regulations. The competitiveness gap in French farms must be addressed for sovereignty.
Thank you, Mr. Bompard. For the Ecologist and Social group, Mr. François Ruffin. You have the floor, Mr. Deputy.
Carrefour is the largest private employer but also the largest layoff machine. Since you arrived, you disintegrated the group via franchises: 80% of Carrefour Markets are now in location management, same for 40% of hypermarkets. 52,000 employees left. Consequences: loss of €2,500-€3,000 in benefits per employee. Franchisees then lay off half the staff (examples: Le Merlan 303 to 180, others). Remaining employees suffer physically (13-18 km walking daily) and mentally. Meanwhile, your salary rose 50% to €4.6 million, dividends up 5%, stock up 10%. Align yourselves with the employees: cut your pay by 10-20%.
I have closed zero hypermarkets. Franchising saved 50 stores and their jobs. It was done with a social clause, signed by almost all social partners, with guarantees on pay, health insurance. Overall employee satisfaction improved after transition, according to independent surveys. Nothing worse than a store in crisis. Franchisees give stores a future. Also, Carrefour creates 400 new stores per year; 150,000 people work under the banner, more than when I arrived.
