Sir; Asda's reaction to its current poor performance mirrors that of many grocery retailers around the world. The answer to all retailers' woes is to simply cut prices and squeeze more money out of suppliers to fund it.
Retailers increasingly see their suppliers as a stream of never-ending funds to use to supplement their bottom line.
Supplier engagement is particularly sought around supply chain initiatives. Those early adopters generally find they are held hostage to an ever-changing agenda that can ultimately penalise them versus their competitors. Retailers can quickly change to use supply chain partnerships as yet another opportunity to dump more cost on their supplier base and further diminish the supplier's bottom line.
The two parties need each other - only genuine countrywide brands build markets for all retailers. Brands command premiums and add value to categories.
Let's focus on profitable growth, not commoditisation and devaluation. I'm talking from the point of view of the Australian grocery industry in which I work, but believe it is the same issue in the UK.