Monday, February 21, 2011

HOW TO END BELOW COST SELLING?

The problem with trying to end below cost selling is coming up with an  mechanism that will actually work.

 A mechanism banning sales below total duty and vat will not work as on a €7 euro btl of wine this only comes to €3.20.

 A mechanism banning sales below  invoice price will just mean that the large multinational supermarkets can merely invoice the Irish division at a low price to ensure that they are not breaking the law by selling below cost. 

Alcohol is used as a driver of footfall to increase the multiples market share of Grocery.
Supermarkets  are competing against each other, using alcohol ,to increase their individual share of this market




Tesco plc  is a global grocery and general merchandising retailer headquartered in Great Britain . It is the fourth-largest retailer in the world measured by revenues  and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia,Europe and North America  and is the grocery market leader in the UK (where it has a market share of around 30%), the Republic of Ireland,Malaysia and Thailand


If we could find a solution that is actually legal under E.U. law there is an appetite to deal with the matter.
Reward offered! 



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