More than 60% of independent retailers believe that their shoppers would still buy price-marked packs if suppliers increased the price of them a little, new research reveals.
The survey by digital and data experts TWC shows just 10% of retailers disagreed with the statement.
In addition, 80% of the retailers questioned agree that their shoppers like price-marked packs. A similar proportion (78%) agreed that PMPs demonstrate good value for money to shoppers. This is consistent with the consumer research TWC has conducted.
Tom Fender, Development Director at TWC, said: “There is no doubt that consumers like price marked packs and their role in communicating value is critical at this time with the ongoing impact of the cost-of-living crisis. Independent retailers have their own challenges in managing the rising business costs of running their stores – and product margins need to reflect retailers’ costs in 2022 as well as wholesalers’ margins too.”
He added: “From speaking to retailers, we are hearing that many are wanting to give less space on their shelves to PMPs because their margins are just not big enough to be sustainable. This seems like a real shame. Consumers love PMPs. Retailers want to stock PMPs because they know consumers love PMPs, but the margin has to work for all parties: the consumer, the retailer, the supplier and the wholesaler.”