Surviving the Retail Squeeze

Description

More than ever before, manufacturers are feeling the squeeze from retailers who are determined to provide consumers with outstanding value in the form of “Everyday Low Prices.” Through their endless quest for sourcing goods at the lowest possible cost, retailers, in essence, have manufacturers eating out of the palms of their hands: In order to retain the customer relationship, manufacturers, for the most part, have been forced to continually decrease prices. (Wal-Mart-not only the world’s largest retailer, but also the world’s largest company-is a textbook example of a company that demands lower prices from its suppliers of basic products, year-over-year.)