UK: Suppliers lose out on special offers, claims report

Telegraph.co.uk 31 August 08

Supermarkets pocket almost 90pc of any profit made on goods that are sold on money-off promotion, a new report this week will claim.

The report will strengthen the argument that suppliers to big chains such as Tesco and Asda need to improve their tactics when it comes to negotiating terms with the retailers.

Billetts, a research company that is part of marketing analytics company Thomson Intermedia, has analysed more than 15,000 supermarket promotions across 30 different categories over the past five years.

The results, which are due to be released in a report this week, will show that 86pc of profits made on goods that are sold on special offer goes to the retailer rather than the supplier.

Full article at http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/01/cnpromo101.xml