Pink Sheet is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

"EVERYDAY LOW PRICE" RETAILING CONCEPT WILL BECOME MORE ROUTINE

This article was originally published in The Tan Sheet

Executive Summary

"EVERYDAY LOW PRICE" RETAILING CONCEPT WILL BECOME MORE ROUTINE, Jack Salzman, VP, senior securities analyst and associate director of research at Goldman Sachs, told the Cosmetic, Toiletry and Fragrance Association annual meeting in Boca Raton, Fla. March 1. Predicting that "everyday low pricing is going to spread," Salzman declared: "We won't call it everyday low pricing. We may call it different forms, it may manifest in different ways on different product categories, but the content behind EDLP, which is essentially to reduce promotion allowances, to reduce discounting and pass that savings on to the consumer, will take on new meaning . . . for the consumer down the road." One company that seems to have embraced the EDLP strategy is Procter & Gamble, which initiated what it describes as a "transfer" of retailer promotion funds to lower list prices on a limited basis in late 1991 and early 1992 and expanded this low- pricing strategy to 40% of its U.S. business last spring. Under the program, P&G began selling products to retailers at lower prices, but simultaneously cut promotional dollars provided to stores. Salzman also forecasted that, in all channels of distribution, "we're looking for a sort of smearing, a convergence by a lot of retailers." Deep discount mass merchandisers "are going to start looking like mass merchandisers, mass merchandisers are going to start looking like supermarkets and supermarkets are going to start looking more upscale," he commented. Salzman also predicted that specialty stores "will become a national channel of distribution" within the next five years. "We think there's a specialty" retailer "out there somewhere" for personal care products. "We don't know if the Cosmetics Plus or Cosmetics Centers or Perfumanias or companies like that are the right forms, they probably need to be modified . . . but we think the consumer wants this form of distribution," he said.

You may also be interested in...



Supplement GMP Warning Letters Make Modest Debut In 2010

Finalization of a settlement between the Federal Trade Commission and Rexall Sundown regarding unsupported cellulite treatment claims for the firm's Cellasene dietary supplement hinges upon approval of two related class action settlements pending in California and Florida, according to FTC

In Brief

Combe sells most of its OTC brands

People In Brief

Perrigo promotes in pricing, planning

Topics

Latest Headlines
See All
UsernamePublicRestriction

Register

PS081193

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel