Migros does not go along with recommended price increase
Migros is not going along with a recommended price increase by Gillette manufacturer Procter & Gamble. Instead, the mass retailer is lowering prices for razor blades.
From Monday, the blades in Migros stores will cost five to ten francs less than the manufacturer's recommended price, as Migros announced on Sunday, according to SDA. Migros is thus defending itself "against Gillette's excessive price recommendations".
"Increases are not comprehensible"
The market leader Procter & Gamble justifies the annually rising costs of its products with high expenditure on advertising campaigns, product developments and promotions to ensure the company's growth. "The increases are incomprehensible to us. The prices have reached the limit of what is bearable. It gives the impression that they are simply trying to achieve higher margins", Alex Sieber, Head of Food/Near food at the Federation of Migros Cooperatives, is quoted as saying in the press release. Migros had already refused to go along with a price increase in August. Migros wanted to set an example and counter Gillette's market dominance. The price reduction is entirely at the expense of Migros, which is accepting losses of "several million francs" due to lower margins.
"Migros Premium" from the beginning of 2010
Migros will introduce the new "Migros Premium" brand at the beginning of 2010. Under this brand, the retailer intends to visually group together those products that are already offered as premium items in all product ranges. Spokesman Urs Peter Naef confirmed this to the NZZ am Sonntag. For the time being, the wholesaler does not want to give any details about the design and price positioning. It is clear that M-Premium will be positioned between the luxury line M-Sélection, which comprises around 200 items, and the mid-price label M-Classic, writes the Sonntagspublikation.
"Increases are not comprehensible"
The market leader Procter & Gamble justifies the annually rising costs of its products with high expenditure on advertising campaigns, product developments and promotions to ensure the company's growth. "The increases are incomprehensible to us. The prices have reached the limit of what is bearable. It gives the impression that they are simply trying to achieve higher margins", Alex Sieber, Head of Food/Near food at the Federation of Migros Cooperatives, is quoted as saying in the press release. Migros had already refused to go along with a price increase in August. Migros wanted to set an example and counter Gillette's market dominance. The price reduction is entirely at the expense of Migros, which is accepting losses of "several million francs" due to lower margins.
"Migros Premium" from the beginning of 2010
Migros will introduce the new "Migros Premium" brand at the beginning of 2010. Under this brand, the retailer intends to visually group together those products that are already offered as premium items in all product ranges. Spokesman Urs Peter Naef confirmed this to the NZZ am Sonntag. For the time being, the wholesaler does not want to give any details about the design and price positioning. It is clear that M-Premium will be positioned between the luxury line M-Sélection, which comprises around 200 items, and the mid-price label M-Classic, writes the Sonntagspublikation.















