A category management specialist has said suppliers must be ready to review ranges or risk being dropped, after Kingsmill’s sliced bread was de-listed in Tesco.
The de-list, part of Tesco’s new “volume driven strategy”, has prompted a warning for companies to make range reviews a “central focus” to maintain supply deals.
Joint managing director of category management specialist Bridgethorne, John Nevens, said: “If the Kingsmill decision demonstrates one thing, it is the importance for suppliers to really get to grips with the way the multiples work and to ensure they have the information, the strategies and the practical plans in place to ensure their business meets the needs of the retailer rather than expecting things to work the other way round.
“For example, with the Tesco category re-set programme reaching its activation stage, all suppliers need to be in a state of readiness. They need to prepare for all eventualities: scenario planning; conducting in-depth range assessments; and stakeholder engagement.
“We believe clients need to attract new shoppers to a category and, more importantly, encourage them to buy regularly as this encourages a positive supplier-retailer relationship.”
Kingmill’s sliced bread range was dropped from the supermarket listings in March, but other products from the brand will still be stocked.
This comes as the Big-4 take on the battleground of the current market, and Tesco and Morrisons operate under new chief executives.
Tesco has recently seen a rapid overhaul of the upper management team, and is undergoing a major restructure of the business to get it back on track.