I believe tesco have done a complete sku assessment and reflection into current position. They are negotiating the sku numbers down, currently selling more variety than anyone else and it cannot continue
They are therefore approaching suppliers, looking for big discounts but offering larger volume and huge potential to stay in the business. Therefore tesco changes could be good for premier if they are in and I would suggest the majority of their products will be. Tesco are changing to everyday low prices, promos will drop dramatically and this is also a good thing for supply chain. All other supermarkets will and are following plus over 5 000 from head office.
Believe it or not, tesco are actually thinking of building relationships.
So tesco etc are all changing their business strategies towards everyday low prices . In tesco sku will be cut, less lines and more volume at the right price given to the few. So will premier benefit. Their brands are strong and wanted, it's all about the deal plus tesco are looking for less suppliers of own label.
We are going to see mass reduction in prices, less promotional activity and fewer suppliers used more. Overall I think this will benefit premier if cost saving initiatives keep going! GLA
I wonder how many shareholders want to go back to the last management strategy of selling off one line after another just to settle the debt. The current team had to resolve one issue first, tackle the debt that was eating...excuse the pun...into the company. They have had the courage to do this and can now plan forward. Like many shareholders I'm holding a large loss on Premier Foods but I'm sitting tight . Death by a thousand cuts is behind us, the company is now able to move forward. Sometimes it's important to support the Directors instead of living in Harry Potter land where a wave of a wand will just work, it won't , we are in for a long haul but to quote the Chinese a long march starts with a small step... or something like that.
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