Cost Declines Go to Promotions at Harris Teeter

Retailers hoping to gain a benefit from falling commodity prices are in for a double whammy: Manufacturers of branded goods aren't lowering prices as much as retailers would like, and whatever money retailers do save will have to be plowed back into promotional pricing to keep traffic up in a slow economy. The effect is blunting the margin benefit of so-called sticky pricing that retailers can typically

Retailers hoping to gain a benefit from falling commodity prices are in for a double whammy: Manufacturers of branded goods aren't lowering prices as much as retailers would like, and whatever money retailers do save will have to be plowed back into promotional pricing to keep traffic up in a slow economy.

The effect is blunting the margin benefit of so-called “sticky pricing” that retailers can typically achieve when their costs fall, analysts said. And it follows a period of price i

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TAGS: Marketing