Paris, August 31, 2007 - French President Nicolas Sarkozy Friday said he intends to roll back regulations governing relations between grocery retailers and producers before the end of the year.
"Between now and the end of the year I will announce the complete reform of back margins," Sarkozy said at a visit to a Leclerc commercial center outside of Paris.
Back margins are a discount that suppliers grant distributors after reaching certain sales targets for their goods, a practice criticized by some for giving the upper hand to large retailers.
French retail giant Carrefour (12017.FR) Chief Executive Officer Jose Luis Duran Thursday called on the government to lift regulations governing relations between producers and distributors.
Sarkozy and members of his government have said they are seeking to push through reforms of the sector in order to lower consumer prices.