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…