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Margins squeeze warning 

'This could actually be an existential issue for a lot of manufacturers'

Hygiene is key factor in cash and carry decisions

Independent retailers could continue to see margins squeezed on core convenience lines, according to analyst IGD. 

Speaking at the firm’s Insight and Impact conference last week, IGD chief economist James Walton warned of a widening gap between wholesale prices and manufacturing costs due to issues such as rising fuel bills for suppliers. 

He said: “Manufacturer margins are under severe pressure, particularly in private label. In retail and wholesale, the margins are so thin and there is no opportunity for businesses to absorb [the costs]. 

“We have a picture of an industry that is under enormous margin compression across the chain. This could actually be an existential issue for a lot of manufacturers.”

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