A top French retail chain is now pressuring companies that are using the shrinkflation tactic.
Some products in Carrefour now have #shrinkflation warning signs so that consumers will know if they are buying pricer items.
#SHRINKFLATION Warning Signs Now in French Products
According to Fox Business' latest report, Carrefour, a leading French multinational retail and wholesaling corporation, is now pressuring firms by placing shrinkflation warnings on their products.
For those who are not familiar with the shrinkflation tactic, this practice involves reducing the size of products while maintaining their original prices.
Numerous businesses across the globe are using this strategy so that they can save money for other expenses during economic inflation. Usually, the shrinkflation tactic is used by the food and beverage industries since it is hard to spot if their products are reduced in size.
Reuters reported that Carrefour is putting shrinkflation stickers on products because companies are still using the tactic even though raw materials prices have eased.
"Obviously, the aim in stigmatizing these products is to be able to tell manufacturers to rethink their pricing policy," explained Carrefour's Client Communications Director Stefen Bompais.
Meanwhile, Carrefour's CEO Alexandre Bompard said that despite repeated warnings, consumer goods firms still refuse to cooperate in their efforts to cut the price of staples in France.
Aside from Bompard and Bompais, France's Finance Minister Bruno Le Maire also criticizes consumer goods companies that are retaining their shrinkflation strategies.
Maire even summoned 75 retailer giants, as well as consumer groups, in June to urge them to reduce the prices of their products.
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Products With Shrinkflation Warning Stickers
Carrefour said that it has identified a total of 26 products that have been reduced in size without price adjustments.
The French retail chain said that these consumer goods are from PepsiCo, Unilever, and Nestle. In one example, Carrefour said that Nestle's Guigoz infant mil had gone from a pack size of 900 grams to 830 grams.
Aside from this, the multinational wholesaling corporation also confirmed that the Lipton Ice Tea sugar-free peach flavor is now only 1.5 liters (originally 1.25 liters).
To ensure that consumers are aware of these products, Carrefour puts shrinkflation warning stickers on shelves where they are placed.
"This product has seen its volume/weight fall and the effective price charged by the supplier rise," stated the warning sign.
As of writing, Nestle, Pepsico, and Unilever haven't commented regarding the decision of the French retail corporation.
