Retail Power Making Or Breaking The Brand

Brian Moore
EMR-Namnews

With 10% of a suppliers sales and profits accounted for by a brand, and a retail customer producing 10% of sales and profits, it is perhaps wise to treat the two as equally important business units, while preserving brand integrity. In other words, the brand has to be sacrosanct. So much for the sales director's problems The real issue for brand owners and agencies is that as the grocery trade becomes more polarised and powerful, major retailers are now in a position to concentrate, or dilute, the brand message, depending upon whether or not they see a complementary relationship between brand-message and store-message.

Retail power

Wal-Mart, with a 44-year history of growing at over 20% Compound Annual Growth Rate (CAGR), producing a steady 20+% return on capital, has a database larger than that of the Pentagon, a workforce larger than US military forces, and a sales turnover of $256 billion that makes it 250% larger than any fmcg supplier.