EDITOR'S COMMENT: Every little helps

Editor Kitchens & Bathrooms News,
Philippa Turrell

While much of the retail kitchen and bathroom industry is getting in a tizzy about the threat of cheap prices on the internet, challenges to their business may actually lie elsewhere. Tesco is now helping itself to yet more kitchen sales following a recent re-structure of its team. The supermarket giant has recently appointed a new sales team and Mark Two Distribution now provides the product and leads the installations. Could this powerful combination be enough to attract kitchen consumers away from the high street? This supermarket brand certainly has clout and if it has the right product, at the right price, plus a comprehensive after-sales service – it could be the value that consumers are looking for. Independent retailers which suggest their business is safe, because Tesco doesn’t offer a wide enough choice, may find themselves disappointed. The supermarket has already created an online marketing campaign to drive business and this is tied up with attractive consumer promotions. It could be just enough to entice purchasers.

 But could this arrangement between Tesco and Mark Two, actually create more difficulties for the distributor than high street retailers. The recent and much-publicised troubles of Mark Two have already seen the business lose money chasing volume sales. The company, which supplied both Dolphin and Focus, lost out following the collapse of both of these businesses. Could Tesco be the final nail in the coffin? Will we see this supermarket giant further squeeze Mark Two’s business with demands for keen pricing? Or will independents eventually walk away from the distributor, concerned that its interests only lay in servicing large contracts? Frequently, manufacturers are accused of running with the hares and hunting with the hounds? If it works for the company - fine - but it can also be the reason for a businesses’ demise. Has Mark Two overextended its business model or is it simply a case of every little helps?

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