Topps demands cost price reduction from all suppliers

Earlier today, suppliers to Topps Tiles received a letter from their Commercial Director Brian Linnington informing them that Topps will be implementing a cost price reduction from 1st May 2013.

Using the excuse of a significant decline in profit, tighter margins and further pressure on profitability, Topps makes it clear that they intend to introduce the new prices (that are on average 6% lower than today), 'across the board' from 1st May.

Suppliers who are willing to support the initiative will be invited to become part of a 'core group' with the opportunity to have regular range reviews and to build closer working relationships with all parts of the Topps business including the Marketing and on-line teams.

With the majority of core markets in decline, retailers going bust by the day and with consumer demand at an all time low, we all thought the days of ridiculous demands from retailers on suppliers were long gone - how wrong could we have been!

It seems that if a retailer is finding it hard to make the same money that it used to, they can just 'tell' suppliers to cough-up more contributions and that will all be just fine.

Best of luck Topps!

Source : The Insight Team