April Dentist Article - Follow the Leaders
Follow the Leaders – Short or Long Term Strategies Compared
Steve Gates, managing partner of The Gap Partnership retail consultancy, said: “Today, we saw Tesco’s slice of the supermarket sector slip as it reported its slowest profit growth in 15 years and only a 3% growth of like-for-like sales, compared to Asda and Morrisons which recently reported a 7% rise.
“Today’s results raise questions about the approach adopted by Tesco to ride the waves of the economic storm.
“It has adopted a short-term strategy in the UK to cut prices for its customers, squeezing its suppliers to invest in price and deliver cheaper ranges.
“In stark contrast, Asda and Morrisons have adopted a longer-term strategy to deliver discounted lines for consumers.
“Whilst price is an important negotiating point, it is not the only one.
“To deliver consumer value and increase market share, Asda and Morrisons have collaborated with their suppliers to unearth new areas of savings using other variables such as terms of business, cash, risk and investment,” said Gates.
Our belief at Ken Rand Partners is about long term relationships and building future success through quality service. This is not just recession proof but builds for future success with all our partnerships.
