Recent research from TWC has revealed that 62% of independent retailers feel that their shoppers would still buy price-marked packs (PMPs) if suppliers increased the price of them a little. Just 10% of retailers disagreed with the statement.
The findings indicated that independent retailers believe that it is the price flash on a PMP – rather than the specific price point itself – that triggers consumer purchase.
Eight in ten of the retailers questioned in August/September agreed that their shoppers like PMPs. A similar proportion (78%) agreed that PMPs demonstrate good value for money to shoppers.
Tom Fender, Development Director at TWC commented: “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.
“With costs increasing across the board in UK grocery stores, I can totally understand why retailers and wholesalers are asking suppliers to embrace PMPs with higher price points and an improvement in margin to ensure to ensure the independent sector remains viable for everyone all along the supply chain.”