Blog: Petah MarianPromotional intensity reaches "record levels"

Petah Marian | 10 January 2011

Promotional intensity in UK retail looks to be showing no signs of abating, with Morrisons CEO Dalton Philips saying today that promotional intensity reached record levels over the Christmas period.

In the retailer's Christmas earnings call, he said that promotional intensity reached 40%, up from Sainsbury's CEO Justin King's estimation of around 36% in November.

Philips said that despite all the "headlines around inflationary pressures", customers in his stores got a "great deal" over Christmas.

When asked if the continued competitive environment was going to have an impact on margins, he said that the retailer is "taking a hard line with suppliers", but that because the retailer manufactures so many of its own products it has a "very clear idea of what's happening with pricing".

He said competitive pressure has "stepped up since the beginning of the year" and that it came out with a "really aggressive price crunch" that is largely offsetting VAT increases, with the customer benefiting from some "very sharp pricing".

The promotional intensity, he said, is likely to remain high as consumer confidence in their personal financial situation is negative and with further Government cuts planned, is only likely to worsen.

 


BLOG

Nestle announces changes to senior team with new CEO on horizon

Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....

BLOG

Blue Bell Creameries involved in another safety scare

Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...

BLOG

Hain Celestial's Orchard House deal waved through

The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....

BLOG

Hershey's unusual move to share sales data

Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....

just-food homepage



Forgot your password?