Today’s Group managing director Darren Goldney has called on suppliers to put themselves in the shoes of an independent retailer when setting price-marked promotions.
In an interview with Retail Express, Goldney said retailer margins are being squeezed as inflation creates unsustainable promotions.
The new Today’s Group boss said: “The subject of price-marking becomes massive when there’s an inflationary pressure, especially around key price points like £1. PMPs have to have a competitive consumer price, but not so fine that it becomes borderline as to whether retailers can actually make any money at the end of it.”
Goldney said PMPs had improved consumer confidence in independents, but that “the pendulum has swung too far the other way”. He said the group would be challenging suppliers on delivering better opportunities for retailers.
Both measures of inflation saw increases in the most recent releases by the Office for National Statistics (Nov 2017). CPI stands at 3.1% and RPI is at 3.9%. According to Retail Economics CEO Richard Lim, the timing couldn’t be worse. He stated: “Food inflation is at a four-year high and for many families, this is one of the most transparent indicators of living costs.”
The Today’s Group MD said that despite inflation, retailers and wholesalers should remain critical of supplier price increases. He told Retail Express: “I know from my own experience as a supplier that sometimes when there’s an inflationary mood there’s an opportunity to put through a price increase ahead of what is justified.
It’s our obligation to retailers to challenge suppliers and make sure their reasons for increases are robust and fair.”