What happens when the long-term pricing strategy meets the short-term reality of retail?

Auchan offers an interesting case.

At the end of 2024, the French retailer made a strategic choice: reduce promotional intensity and invest more heavily in everyday shelf prices.

The logic made sense.

Improve price competitiveness.
Strengthen long-term price perception.
Rely less heavily on promotions.

And Auchan acted decisively.

In Q1 2025, its promotional pressure fell by 23%, compared with a 7% decline across the market.

But there's a problem with changing price perception:

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