Thursday, 5 January 2017

M&S Agrees To Grocery Price Rises Following Supplier Threats

Marks & Spencer has reportedly accepted wholesale price rises of up to 15% on some of its grocery lines after suppliers threatened to withdraw their products.

Where at: Clearly at the limits of supplier & retailer cost absorption, with ‘public’ announcements best left to the post-agreement stage

Where headed: Some face-saving rationalisation, knowing that scale savings rarely transfer directly into significant reductions in cost of production

Effect on you: opportunity for NAMs in other customers to watch from the ringside, and learn from premature moves

Action: Stick to defensible price increases based on latest analysis of competitor and customer financials…

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