Wednesday, July 11, 2007

RETAILERS: THE GOOD, THE BAD AND THE UGLY.

Our survey coverage today directly correlates with yesterday’s topic of discussion, although it focuses solely on the retail chain. Since the last tier, in most cases, handles the product before reaching consumers, retailers have a very important role which can either put a strain on relationships with wholesalers and suppliers or simply not.

When asked “what is your relationship like with retailers?” most of you said your relationship is great as long as you keep communication and honesty at the forefront. Readers who rated their partnership as “good,” “great,” “excellent” or something of that nature harped on the need to maintain “strong relationships” with retailers because, as they pointed out, there are a lot of brands for retailers to choose from.

Because we usually like the good news first and save the juicy stuff for last, here is a sampling of positive comments:

“Retailers are showing a trend toward more respect and partnership with wholesalers especially among the smaller specialty wholesalers.”

“I think the retailers prefer seeing me as a supplier than the big distributors.”

Being a small brand owner, I have to cultivate strong relationships with key retailers. Sometimes they are big customers and sometimes they are small stores/bars that love my stuff. My job is to make sure they make a profit and understand how to sell the product.”

“My relationship is good although we're perceived as a necessary evil.”

“I pretty much do direct-to-consumer and don't have a lot of contact with retailers. The ones I do have contact with like the fact they can cut out the middleman and they are always receptive to me and my product.”

“Honesty and communication will always keep you ahead of the competition.”


Of course as any therapist will tell you, no relationship is perfect. Many survey-takers offered constructive criticism and some complaints as to how things could be better.

“My relationship is good but there is a lot of termoil here in NY.”

“Can't ask for favors any longer. The retailer is a businessman looking for price advantages and support.”

“Micro management is hurting relationships with retailers.”

“Retailers demand more and more service.”

“They are confused and don't handle sets properly. The majority of people running the departments aren’t educated enough, and are too easily influenced to make the right decisions.”

“Training, training, training.”

“Retailers have become less sophisticated and knowledgeable over time... it is a function of all the new products as well.”

“My relationship is very good with chains, but independents are much less loyal and more skeptical and suspicious.”

“Retailers are the enemy. It's their choice. They are flexing their muscles and making demands on wholesalers verses their own people. The days of partnering with a customer has gone the way of the buggy whip.”

“Improved with the independents. Difficult with all chains, especially the on-premise chains in bed with suppliers.”


The second part of our question was directed to retailers specifically. We asked, “If you’re a retailer, what is your relationship like with your wholesalers?” The answers were a little sparser, but here’s a sample of what the retailers said:

“Very good with small and medium sized wholesalers.”

“Fair. The biggest problem is that distributors do not sell but rather have become "order takers." As a consequence, new brands are not given a chance to expand in a specified category.”