POSTED BY: MIKE KELLY
Supermarket price war rhetoric has recently ramped up, stoked by Tesco’s slump in performance which has seen like for like sales fall by 3.7%, primarily driven by the rapid expansion of low cost retailers, such as Lidl and Aldi, and increased transparency afforded to consumers by online retail.
Figures released by the ONS in May show that food and non-alcoholic drinks prices have fallen by 0.6%, and while this might be a welcome statistic for consumers, it spells trouble not only for the supermarkets, but for the FMCG manufacturers stocking the shelves. As the likes of Tesco seek to maintain revenue, it seems inevitable that FMCG manufacturers can expect increasing pressure for deal selling, squeezing margins as supermarkets pass on costs. Knowing that this is coming, we take a look at how FMCG manufacturers can not only look to weather the storm, but thrive in challenging conditions.