Suppliers believe that by focusing on lower prices and cost-cutting measures, retailers run the risk of destroying value in the grocery sector.
Our reader panel was unanimous in its belief that it could harm the industry, while over two-thirds thought the problem was already stifling innovation in the sector.
Two-thirds said they had experienced price deflation. Half thought it was worse than at the start of the year; the same figure expected it to worsen in the next three months.
The findings follow comments at this year's IGD convention by head of P&G's business in Western Europe, Paul Polman, who urged retailers to focus on adding value rather than destroying it through price cuts.
One supplier said: "Regardless of what the retailers say they are not altruistically trying to benefit the consumer."
>>p22 Reader Panel

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