One of Germany’s top retailers has warned big brand owners that they are making a huge mistake by supplying their products to the discounters.
Hans-Joachim Körber, CEO of Metro, was particularly critical of manufacturers who supply only a few lines - usually those with the best sales volumes - to discounters. “This will have a negative impact on brand image and prices, and make it more difficult to generate added value for producers and retailers,” he said at the Anuga trade fair.
In a highly competitive
market, with rising costs, it was important for manufacturers to support traditional retail formats, which he said “remain the decisive bridge between a brand and its customers”.
>>p35 ‘You’ve been warned’