Wednesday, May 16, 2007

Manufactures upset over retailer discounts

Manufacturers from several sectors are protesting against organized retailers use of discounts to customers. These discount offers reduce sales at smaller retail stores, who form the bulk of sales for these manufacturers. One retail expert explained that, "Discount offers provided by organised retail chains are increasingly eating into the small retailers' pie. Thus, creating a problem for manufacturers, since it is the smaller players that drive bulk of their sales, in spite of the hype around the retail boom."

Snack food manufacturer FritoLay stopped supplies to Future Group's Big Bazaar and Food Bazaar stores for the past few weeks to put forth its point against selling its products at lower prices. Organized retailers are not getting cowed down to the pressure since they have faced similar treatment at earlier times as well.

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