The New Year has kicked off with a flurry of tempting promotions from key wholesalers battling it out to offer retail customers a competitive edge.
One of the most sustained campaigns was announced by Today’s Group last month. Its Margin Maker initiative offers 40-60% profit on return (POR) on own-brands, while promising to maintain wholesalers’ margins.
The managing director of Today’s Group, Bill Laird, says: “Credit card and utility bills hit peoples’ doorsteps soon after the festive season. For retailers, the situation is even tougher – they face pressure on both a domestic and a business front, particularly as shoppers reign back their spending.”
The first of a series of promotional activities that started at the end of January offers 40% POR on a number of products from the Today’s Select brand, which covers core food and beverage lines, and 60% POR on three Blue Stone Spring mineral water lines.
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New year sales highlights
Today’s group is offering 40-60% profit on return (POR) on Today’s Essentials, Select and Blue Stone Spring mineral water lines in its Margin Maker campaign.
Bestway launched an eight-week Profit Shocker campaign offering retailers up to 50% POR on top-selling own-label products.
Landmark tempted retailers with Price Fighters, offering 40% POR on 40 Lifestyle Express lines for a three-week period.
Booker Booker was the first wholesaler to offer a deep cut margin of 40% on branded lines plus an additional 20% margin on its own-label wine range.
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Wholesalers will be supported throughout the campaign with merchandising and in-depot point-of-sale material, while retailers will be supported with posters and shelf-talkers.
The initiative is expected to help retailers who use Today’s Group wholesalers to consolidate their own-brand ranges. “Previously, retailers have gone elsewhere for own-label lines because we didn’t have the strength of an own-brand offer. However, now we do and we’re encouraging them to make the switch to ‘their’ brand,” says Laird.
Saturation of deals tests brand loyalty
In the same month, other wholesalers that turned up the promotional heat included Bestway, which launched an eight-week Profit Shocker campaign that ends on March 3 and offers retailers up to 50% POR on top-selling, own-label products including soft drinks, non-food and grocery.
Landmark also tempted retailers in January with its Price Fighters campaign, which offered 40% POR on 40 Lifestyle Express lines for three weeks.
Meanwhile, Booker was the first wholesaler to offer a deep margin of 40% on branded lines as well as an additional 20% margin on its own-label wine range.
With so many competitive offers on the market, it can be difficult for retailers to be brand loyal. When Better Wholesaling asked Nisa retailer Rav Garcha whether he is tempted by other own-label brands, he said: “I get what my customers ask for – they don’t know what own-brand should be where. It’s not like George is to Asda.” But availability is also important. “Sometimes, we have to visit the cash & carry if Nisa doesn’t have what we need,” Garcha adds. “Other times, we just forget to order it in the first place.”
