What to Do
Retailers rarely choose not to participate in the scan-down/IR promotions because they fear losing sales. But buying groups, including HTSA and PRO, have made it clear to their vendor partners the promotions are extremely difficult for retailers—especially independents—to manage.
For his part, HTSA’s Glikes wants a return to more realistic pricing. “When you bring out your new line, make sure you have the right price so you don’t have to do this kind of stuff,” is his message to manufacturers.
To help prevent them from being sucked into price wars, retailers want vendors to clearly delineate commodity product from step-up and high-end lines. They also want longer program times so they can take batter advantage of them.