Tuesday 2 February 2010

Asda's Plans for an Auction Website To Shift Stock To Grey Market

The Grocer's reports that Asda is planning to launch its own eBay type auction website raises a number of issues for traditional retailers in these categories:
1. What will be the cut-off point where clothing, homeware and electricals move from being 'current stock' to
'residual' stock?
2 Asda's efficiencies and narrower ranges could mean that their 'residual' stocks are competing via auctions with traditional retailers' 'current' stocks
3 Will suppliers follow Asda's lifecycling of their products or the slower seasonal sales profile of traditional retailers in launching new products?
4 Will suppliers schedule range changes to suit Asda or traditional retailers?
5 If the Asda initiative works, how about other mults?

- Opportunity for all parties to reassess the definition of range and lifecycle stages, by channel
- Opportunity for suppliers to focus upon better merchandising of current stock instore, each channel
- Opportunity for traditional retailers to focus upon parts of ranges not stocked by the multiples

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