“Consumers have only one priority, and that’s to have food on their plates,” observed Michel Biero, Lidl’s number two in France. “And they do so with canned tuna rather than salmon, and minced beef rather than rib steak.” In his opinion, one figure in the sales of the company’s more than 1,600 supermarkets in France illustrates the difficulty French people have in making ends meet: the popularity of “flash sales,” with power tools, food processors, and textiles at knock-down prices. The “bargain bins” used to entice many customers when they were filled up with discounted products twice per week. But that’s no longer the case. “Before the Covid-19-related crisis, the war in Ukraine and the inflationary crisis, non-food products accounted for 10% of store sales; today, we’re between 6% and 6.5%. Anything over €10 is selling less well,” said Biero.

Despite the fall in inflation – it fell to 1.2% in September year-on-year, according to the National Institute of Statistics and Economic Studies (INSEE), down from 4.9% a year earlier – the recovery in consumption, which accounts for half of France’s economic activity, is slow to materialize. Between August 2023 and August 2024, French spending remained sluggish, according to the latest INSEE data. A quick glance into supermarket carts illustrates the trend. This summer, the average household shopping basket consisted of just 11 items, compared with 14 in 2020, according to market research institute Kantar.

“The population is not feeling the significant slowdown in inflation,” said Emmanuel Le Roch, general delegate of the Procos Federation for the Promotion of Specialized Trade, which brings together 310 chains and 60,000 stores (DIY and furniture). And with good reason: “In food superstores, prices are still 20% higher than in 2021,” said Emily Mayer, research director of the Circana Institute, which collects checkout data transmitted by supermarket chains.

Prices have climbed faster than paychecks. “Between mid-2021 and mid-2024, prices rose by 13% on average and wages by 11%,” said Mathieu Plane, deputy director of the analysis and forecasting department at the French Observatory of Economic Cycles (OFCE). “Real wages have therefore fallen by 2%.” That means less disposable income.

This has been all the more painful given that disposable income is also being eroded by so-called “necessary” expenses. First and foremost among these is housing, which is taking on an ever-increasing proportion of household spending. In 2000, it accounted for 19.5% of French spending. Since 2022, people have been devoting 22% of their budget, which reduces what is available for food (13.5% of total expenditure), clothing and leisure by the same amount.

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