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The end (finally) of price as a differentiator – and time for retailers to find something new.

Insightful take on the competitive direction retailers need to take

Mike Anthony @ engage consultants

I am probably calling this one too early. Like many extinctions, a long time may pass between the first call of a pundit to the final death knell – but here I go. Price is no longer enough, Mr. Retailer. Time to move on.

Sainsbury’s Excellent “Brand Watch” campaign surely is symptomatic of where price has led us. A zero sum game that no-one can win; or at least no-one with millions or billions tied up in real estate.

Price was never a particularly good differentiator, but it has served Big Retail well over the last couple of decades. Wal-Mart in the US used scale and phenomenal distribution systems to offer “the lowest prices”. In the UK, retailers such as Tesco used their scale to drive cost price reduction (CPR) strategies which created a virtuous (vicious, depending on your perspective) cycle of scale, driving down supply price, in turn driving…

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This entry was posted on June 13, 2012 by in Uncategorized.

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