EDLP is the right strategy, but retailers and suppliers are stuck on big promotions
Covid-19 crisis pricing is an interesting one. Particularly savvy shoppers have noticed their normal basket jump as much as 25% – not because prices have gone up, but due to the lack of their beloved promotions. It’s logical that during crisis shopping, price promotions need to be dropped to ease the burden of surges on […]
Coronavirus will complicate next year’s trade negotiations with retailers. Start planning now
Annual business plans are always the area which bring out the worst in wholesale and retail customers. When they have not achieved volume or revenue thresholds, they want the bonus anyway and often scupper next year’s discussions to get it. It’s the assault that keeps on mugging. This year, the virus has brought a whole […]
We need a co-ordinated approach to food supply, with support for small suppliers
Supermarket buyers pressurise suppliers to give their increased orders priority. How is that different from the much-maligned shopper panic buying in-store? If they succeed, the smaller retailers not receiving stock become the equivalent of the elderly lady or NHS nurse who is losing out in-store now. Panic buying exists. It’s human nature, as was mapped […]
Don’t ‘take care of number one’ in Brexit planning. Industry must pull together
It’s March 2020 already, so way too late for new year’s resolutions, but here’s a prediction instead. For the balance of the year trade bodies, industry leaders, banks, international business, journalists and major retailers will moan and gripe about EU trade deal uncertainty. Adjust your filters, ignore the noise, it will change nothing. Many retailers […]
It’s retailer crunch time – who are this year’s Christmas crackers?
It is true that a decent Easter and strong summer can provide some ballast for the annual numbers, but the Christmas season is the ‘make or break’ period for a grocer’s year. Ultimately, it sets the heartbeat for the January trading statements, which are the most important of the year and no retailer can afford […]
Grocery’s ‘dream shoppers’ are going cheap after Mothercare’s collapse
The toughest market conditions on record mean supermarkets are having to diversify and differentiate to attract shoppers. Suppliers can help with differentiation if they are minded to offer exclusives on product, promotion or even merchandising. But diversification is a problem for the retailers themselves, who are all wondering what to do with all that space. […]
New Tesco boss Ken Murphy faces Carrefour and Jack’s challenges
Verdicts are now in following the announcement of Dave Lewis’ surprise departure from Tesco next year and yes, he’s a genius. As no one knows why he is stepping down, I would suggest that – like Terry Leahy – he is hopping off the bus at the top of the hill. His status as consumer […]
Retailers should collaborate, not compete, to cope with Brexit chaos
I have previously avoided the topic of Brexit, but now it seems there’s only one show in town. I always expect the grocery industry to take the lead and set an example, but we seem to be blowing the opportunity to do so with a lack of collaboration. Joint business planning (JBP) is a honed […]
Sainsbury's and Asda have the tools to recover from merger disappointment
When the CMA blocked the Sainsbury’s-Asda merger last week I thought about those spy movies where the torturer suddenly loses the upper hand and has to beg for mercy from the person they were just torturing. Not a good look. Mike Coupe singing while announcing the intended supplier squeeze will sit in the back of […]
Why we must challenge international buying groups
Two weeks back I wrote about the activities of international buying groups, which appears to have touched a nerve among suppliers. In the piece I pointed out that UK suppliers had to date been shielded from this issue by the English Channel. To me, it’s almost a relief that Tesco’s involvement with Carrefour has now […]
