Just less than two thirds (62%) of retailers think that shoppers would continue to purchase price marked packs (PMPs) if the price was increased.
The research from digital and data consultancy, TWC which surveyed 200 independent retailers between August and September, found that only 10% disagreed.
Of the survey participants, 80% believed consumers like PMPs and 78% agreed they demonstrate good value for money to shoppers.
“There is no doubt that consumers like price marked packs and their role in communicating value is critical at this time with the ongoing impact of the cost-of-living crisis,” TWC development director, Tom Fender told Talking Retail.
“Independent retailers have their own challenges in managing the rising business costs of running their stores – and product margins need to reflect retailers’ costs in 2022 as well as wholesalers’ margins too.”
He said TWC understands that retailers are choosing to stock less PMPs due to their smaller margins.
Despite agreeing with the data, saying that “retailers want to stock PMPs because they know consumers love PMPs,” Fender said that the margin has to work across all areas including consumers, retailers, suppliers and wholesalers.
He added: “With costs increasing across the board in UK grocery stores, I can totally understand why retailers and wholesalers are asking suppliers to embrace PMPs with higher price points and an improvement in margin to ensure to ensure the independent sector remains viable for everyone all along the supply chain.”
This comes as Unitas has boycotted and consequently ditched Mars Wrigley treat bags over “unacceptable” price increases as a result of squeezed margins.
