Rising prices and changing habits reshape French retail landscape; consumers turn to private labels

French shoppers are buying fewer tampons and less detergent as prices surge, according to data compiled by NielsenIQ. This change in consumer behavior could become a new battleground for retailers, politicians, and consumer goods makers. The rising costs in France have also driven consumers toward private label products, challenging big brands. French President Emmanuel Macron's government is planning to bring price cuts into effect earlier than usual, hoping to alleviate the impact of rising prices. Additionally, French inflation unexpectedly slowed to 5.6% as smaller price increases for services and manufactured goods offset a government-controlled rise in energy costs. Macron's government will also present a 2024 budget that tests voter appetite for investing public money into the climate transition. Food makers like Nestle and Pepsico have faced criticism from supermarkets and politicians for not cooperating in pricing negotiations and reducing pack sizes of products. Overall, the combination of rising prices and changing consumer habits is shaping the retail landscape in France.