Migros has said that it is temporarily ceasing orders of selected Mars products, following the announcement of a price increase of up to 12.7% on said items.
The Swiss supermarket chain said that it considers the increase claimed by Mars Schweiz AG to be unjustified and uncompetitive.
Commenting on the announcement, the head of food management at the Federation of Migros Cooperatives, Lorence Weiss, explained that the company "cannot accept this increase” and refuses to ask its customers to pay higher prices.
He pointed out that Migros “want to have a good partnership with suppliers", but Mars is “currently categorical about price increases and it does not seem possible to find a solution”.
Product Removal
Migros is therefore removing selected Mars products from its product range. The order block concerns M&Ms, Snickers, Twix and Dreamies pet snacks.
Weiss added that Migros remains open to negotiations, “but on condition that the base and the offer are fair".
As a result of the supply freeze, the Migros subsidiaries will sell the available stocks of Mars items while they last.
In the meantime, Migros will analyse possible alternatives to ensure that customers are least affected by the shortage of items, adding that it is already in contact with other suppliers
“In the face of strong competitive pressure and increasingly tight margins in the retail sector, it would be desirable if suppliers also contributed to ensuring good value for money for customers”, explains Weiss.
He added that all would benefit from an “attractive price-performance ratio”, including suppliers, as the sales opportunities for their products would improve.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
