Tanya Pepin, MD of TWC presented at the FWD Business Lunch and briefing on 8 February 2023. Tanya shared some headlines from a recent research project conducted by TWC on behalf of the FWD. The objective of the project was to create a solid evidence base to determine whether independent convenience retail has remained competitive through current price inflation and whether margins are being unfairly squeezed compared to other channels.
The objectives of the study were as follows:
- Review base pricing in independents, multiple convenience (Tesco Express) and main estate (Tesco supermarket) to quantify the current price differential
- Consider the impact of promotions in all three channels on base price
- Analyse price marked vs. plain pack wholesale selling price and margin to determine whether shared margin is being eroded
- Determine the key costs of doing business in wholesale, the current challenges and potential mitigations – ultimately is the cost of doing business greater than the margin wholesalers and
retailers are achieving? - Create a solid evidence base to determine whether independent convenience retail has remained competitive through current price inflation and whether margins are being unfairly squeezed compared to other channel